Entergy suing for breach of contract over $3.9M transformer

GRETNA – A regional electric provider is suing a company they claim breached a contract for a transformer worth nearly $4 million.

Entergy Louisiana LLC filed suit against HICO American Sales & Technology Co. Inc. in the 24th Judicial District Court on Feb. 18.

Entergy Louisiana claims it ordered a transformer on Nov. 20, 2010, from HICO American Sales & Technology Co. Inc. for a purchase price of $3,967,384.

The plaintiff claims that the transformer was shipped to their Nine Mile energy plant in Westwego in October 2011 where HICO was to install it.  A group of inspectors provided by Entergy would make a decision as to whether the unit was defective or not, according to the suit.

Entergy Louisiana asserts that after the transformer was installed it was found to be defective and HICO removed it and had it transported to a factory in South Korea to assess the root of the problem, but it was never found.

The plaintiff alleges that they rejected the transformer by letter on Nov. 2, 2011, and later notified the defendant they would not accept a replacement transformer. However, Entergy Louisiana claims they were never provided with a refund for the order, according to the suit.

The defendant is accused of breach of contract.

An unspecified amount in damages is sought for all costs and attorney’s fees.

Entergy Louisiana is represented by in-house attorney Sean D. Moore of New Orleans.

The case has been assigned to Division M Judge Henry G. Sullivan Jr.

Case no. 735-616.