ML20106B104

Forwards Order Issued by Jg Hyde in Suit Instituted by Cap Rock Electric Cooperative,Inc Vs TU Electric in 238th Judicial District Court of Midland County,Tx,W/Copy of Transmittal Ltr

ML20106B104
Person / Time
Site:	Comanche Peak
Issue date:	09/22/1992
From:	Samples M WORSHAM, FORSYTHE, SAMPELS & WOOLRIDGE (FORMERLY
To:	Gody A Office of Nuclear Reactor Regulation
References
NUDOCS 9209300320
Download: ML20106B104 (9)

Text

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• WONSHAM, FOHSYTHE. SAMPELs & WOOLDHIDGE ATTORNEYS AND COUN5ELORS AT LAW

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September 22, 1992 VIA FEDERAL EXERED" Anthony T. Gody, Chief Policy Development and Tachnical Support Branch ,

Office of Nuclear Reactor Regulation i U.S. Nuclear Regulatory Commission one White Flint North 11555 Rockville Pike i Rockville, Maryland 20852 Re: Texas Utilities Electric Company, Comanche Peak Steam Electrio Station, Unit No. 2, Docket No. 50-446A

Dear Mr. Gody:

Enclosod are six copies of an Order issued September 21, 1992, by the Hon. John G. Hyde in the suit instituted by Cap Rock Electric Cooperative, Inc. against TU Electric in the 238th ,

Judicial District Court of Midland County, Texas, along with a copy of the Court's transmittal letter.

Among other things, the Midland Court's order grants TU Electric's Motion for Summary Judgment, denies Cap Rock's Motion for Summary Judgment, imposes sanctions on Cap Rock, awards TU l

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Electric its attorneys' fees and costs and denies Cap Rock's Moti>n for Sanctions.

r Ver , rul yours, ,

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.M . D. Sampels ,

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MDS/mkm Enclosures cc: Thomas E. Murley, Director - With Attachment Joseph Rutberg, Esq.

Steven R. Hom, Esq.

William M. Lambe /

James Milhoan, Regional Administrator "

John M. Adragna, Esq. "

Douglas G. Green, Esq.

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GEP ,22-92 TUE 9 247 P. O1 p

JOHN 6. HYDE 0!$1 Rift JllDOC P t A1H JilDICIAt DISTRICI C0tlR1 700 H. WAt L . Mt! t L t.00 Pil ot A HD. 1 E x M. 70/07 trt trarwr Ms on 6:47 k ,, r u an ** ,ria 5,,gl*

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i September 21, 1992

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Re- 0 38.879 Cnp Rock Flectric Cooperative v. Texas Utilitics F:lectric t'ompany (iontienten Fncloscal is a copy of the judgment signed this date. Under the circumstance = of this case. I docm it necessary to enter one judgment and recite in it the factual findings lending to the imposcition of sanctions.

I am mindful of the recent press releases of Cap Rock and, ~while I find them 4 less than candid, the company management is entitled to harbor resentment towartis the court that ruled against the company and to publicly express that resentmen t. This conduct underscores the original assessment made by the Court' but"is W&&cserving of-additionnt sanction....,Ths sanctions _ impose.d..by.,the .

Court 'wcre 'arrlvet"af ter-carefuleconsideratios.of the.faets addressed.at.. trial .

and wern impo'settrr'thtrbasis of the-conduct of . Gap Rock's ManagomonLduring the trial and not what management has subsequently done.

Very truly yours,

\C hn G. 1

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-, '.' ii IN THE 23BTH JUDICI A1. DISTRICT COURT OF MIDLAND COUNTY, TT.XAS C.AP ROC K l't.1:CTRIC ,

C 001'l'R ATIVI'., INC . .

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E 9 NO. B 38,00 ys, 4

TEX As t'Ttt,lTit:S El.lTTit (' UOMPANY, lh fenilant .

ORDER _GRA_N_TQG. S1LS,TMARY JUDGMFNT ANJ) IMPOSING SAN.CTIONS On the 24th day of July, 1902, enme on to ho hentd: (i) Texns Utilities Flectric Cnmpany's Motion for Summary Judgment; (ii) Cap Rock T.loctric -

Cooperntive, Inc.'s Motion for Summary Judgment; (!!!) Texas Utilities Electric Electric Company's Motion for Imposition of Sanctions ngninst Cap Rock Second C oopera t iv e , Inc.; and, (iv) Cap Rnck Floctric Cooperative , Inc . 's

%tton for Rnnellons; and ihn Court, having considerort the Motions for Summary evidene.t< is o. the opinion thnt

.in rl,q men t und the supporting summary jutigment Texas Utilities De ^ric Company's Motion for Summary Judgment has merit anal, Inc .

• n therefore, should he gra 'ed and that Cap Rock Elcetric Cooperative, Motion for Summary Judg., t ahould be denied; iT IS, THERTTORE ORDERED, ADJUDGED AND DECREED that Texas

'lltla Mectric Company's Motion for Sitmmary Judgment is CRANTED; 1T IS FURTHER ORDERED, ADJUDGED AND DECREED that the Power 1990 by and botween Ttxan Utilities Electric Supply Agreement dated Mne 8,

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Company nnit rnp flock Flectric Cooperative, Inc., which is the subject of th s 9ull (the "1990 Power Supply Agreement"). (1) without reference to any parol ov!<!cnce contains :11 of the c.ssential terms of quantity, delfvery, rate scheduln, and notice; (ii) is a fully bindjng, valid , and enforceable contract; (iii) Cap rte. k Floct ric Coopera tive , Inc. Is required to purchase all of its power and enerry rmiuirements from Texns Utilities Electric Company pursunnt to the provisions nf the 1990 Power Supply Agreement until such time as Cnp Rock Eloctric Coopern*fvc inc. provides the requisite notico(s) to Texas Utilities E1cetric company as required by the unambiguous terms of the 1990 Power Supply Agreement and otherwise complies with the terms thereof:

IT TS FURTHER ORDERED, ADJUDGED AND DECREED that Cap Rock Electric rnoperative, Inc.'s Motion for Summary Judgment is DENIED.

The evidence on the motions for sanctions established the following factis:

Cap Rock Electric Cooperative, Inc. agreed to a written success fee contract with its employee, Steve Collfor, nnet with other officers of Cap Rock Electric Cooporntive, Inc. on Noveuber 20, 1992.

The success feo contract providert for financial pnyments to Steve Collier in the amount of 2% of the nel savings difference between the cost of electrical power supplind by Texas Utilities Electric Compnny and the cost of electrical power provided by West Texas UtJ11 ties.

Steve Colljer, in While testifying during the trial on April 14, 1992 response to questioning by opposing counsel as to the existence of such a

'sdoc6ss fee contract, did not answer in the affirtnative but stated instead i. hat he ' nhd ' Cap' Rock 'Elcetrie -Cooperative,-Ines- had only-exchnoged. , proposed .

Innguage of a success fee agreement.

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sEP-22-9a rue e:st P. ou Unp Rock Electric Cooperative, Inc. management was aware of ilm estr.tenen nf the success feo contract at the time Steve Collier testified.

rnilowing the testimony of Steve Collier, Texas Ut!!! tics Elect ric Inc. to Company re<inesteet the Court to direct Cap Rock Electric Cooperative, furnish disenvery of any documents relating to a success fee contract of Steve rollict The Court grantert the request of Texas Utilities Dectric Company an<l directed Cap Rock Dactric Cooperative. Inc. to furnish to the Cottrt copics of any such documents.

In resqvinse to the Court's order, on the afternoon of April 14, 1992 Cap Itack Eterf ric Cooperative, Inc. fitrntahed to the Court a photneop , of n The document was undated, unsigned and was markeil aurcess fee confract.

" DRAFT"

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During the evening hours of April 14, 1992, representatives of Caprock met in a hotel room in Midinnd, Texas.

Thn adjacent hotot was occupied by Steven 11ouin, an employee of j

Toxan Ut!!! tics Electric Company.

1 The conversation among the Cap Rock Ecetric Cooperative Inc.'s representatives was loud enough to be heard in the hotel room occupied by Steven linute.

Mthout the aid of any listaning device, Steven Lloule he.ard tbc converation of thn Cap > Rock Eeetric-Cooperative,, ine.'s reprxsentatives.

~ * "ThW"' Cap *R6ck Eio~etrio' Cooperative,m4ncubreprasentailves. discussed

' the ' exisintice"of%fgnnd -success fee.wontract,4ndAhbapproach ot .tcial, that . ,

would be taken by Cap Rock Deetric Cooperati.ve, Inc.

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scrF 22-92 T u tt 9 :52 e . c3 3 representM(ves nNn Cnp Rock Electric Conperative, Inc.

The discusa.eil the feet that by furnishing the Court an unsigned copy of the success feo enntract m. irked "DRATT" rather than furnishing a copy of the actual signed agreemonf, Cap Rock Elcetric Cooperaf tve, Inc. had not complied with the Court's order.

The following morning. Steven Houlo reported to the Court the Cap Rnch Tiectric Cooperative, Inc. conversation which he heard while in his hotel room.

When riuestioned by the Court, Cap Rock Electric Cooperativo, Inc.

Cap Rock neknowledged the existence of the signed success f ee agreement.

Elect ric Coope ra tive , Inc. stated to the Court that the success feo ngreement Cellier had bcon rescinded before the tria.1 began. No document of with Mr reseksinn was f urnished to the Court.

" The Court concludes that by failing to timely furnish to the Court a . ,

**"eTyy 'rdthr signed' success 4ce -agreement, Capu Rock Dectrie . Cooperative. Inc. .. , ._.,

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L ThoT.05tMiff ofTinatc~rlaF factaan'd5shouldebemsubjectator. sanctions n ondfr,Ahh , r, .

provkinns of Rnto 215 of the Texns Rules of Civil Proceduro.

The Court conclu:'es tLnt by listening to a conversation o=urring in CaF'dil$cifitChBtiF4bo6*MilTertE!%1ninp'Ithtrnshe_sor)Un e s wLhis;ggAoleQg(my>jg;, .

EsM~@digfiCG=6bV6Trifigelfw-shyu onductMorFwhic.ht4 c hog.Cour.t_naysle.G11h.y23.r.

E.' sin ~c'dl59hb?TtinistiMtfAdor:.hfir.EmployacpTerJaa.9ti.lf!ks.@ecdris c o,_m.gny,e nggsg,..

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w$ooperatw+, Ino, is thereforo stanied. , , , , ,

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l Cap P.ock Doctric Cooperative, Inc. (s ordered to perform 200 hours0.00231 days <br />0.0556 hours <br />3.306878e-4 weeks <br />7.61e-5 months <br /> of community servic+ for the infractions found by the Court. I The community service may be performed in any county within the l

~'dgfon r for which Cap Rock Efoetric Cooperative, Inc. supplies electrical pcuer.

"^' The community se rvice work muret b e. performed by officers or )

' rfirect nrs nf Cnp flock Ecetric Cooperative, Inc. , the names of which must be opprovert by the Court prior to the commencement of the community service.

w.. w . .. g.g .coumunit }~servteerwork mushbar perfocmeA.40,.d,ipog.4y,,,hepcjg,3. ,, ,

'" Miff 9ffit*T5 p KGiiiiiirt'y*ird i9 fe er T r o rra mW ar.itabin=dn stitutig pg,.c.txie-,planigt!,9,gy .,,,

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C-Q'dt'JEFiidin pT e tee-widitnMWon'th M-thd fed!Hm:ivdODtJdzdhW S 4 & 7 f c ,ge m t.....

b comes final.

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Utilities Flectric Company have and recover of and from Cap Rock Electric Cooperaftve. Inc.. (1) the zum of $75,000.00 which the Court fintis to be the reasonable At tori:cys fees incurrad through the presentation of Defemiant's Motion for Our.,mts t,- Ji.d gmen t s (U) tha + == .i $1o,ooo.oo &(eh the Cauet fin d s to tem n'asonablo attorneys foes incurwd 'n the preaantatien of l >,re n,in n e * =

Motion for finposition of Sanctions; ( 111 ) the sum of $30,000,00 as reasonable attorneya fees in the event of an appeal to the Court of Appeals, for the services necessary on behalf of the Datendant in connection with auch an appeal; (iv) an additional 525,000.00 as reasonable attorneys fees in the event there is an applicsitjon for writ of error faea with the supreme Court of Texas; and, (vi) an additional $15,000.00 reasonable attorneys fees in the avent the supreme court of Tuman grwie an erett.**n fee writ et enen.

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U tilitias ricct t1e Company have and recover of any from cap Rock Elantile C.ooperntive, Inc. , the costa of Court incitrred in this enune, SIGNED this the ss '.'. _ (lay cf $cptember, 1992, 3 p x . A t .v .ol !) ""

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