TransAlta Centralia Generation, L.L.C., et al., Petitioners, v. Sicklesteel Cranes, Inc., et al., Respondents., 134 Wn. App. 819

Summary

In granting summary judgment, the trial court found, inter alia, that the corporation failed to mitigate its damages by not enforcing a force majeure clause in the parties' contract. On review, the corporation contended that it did not fail to mitigate its damages because it acted reasonably in allocating to one of its subsidiaries, a generation company, the cost of the replacement power to meet its contractual obligations to another subsidiary. The appellate court found that reasonable minds could have differed as to whether the subsidiaries intended that the force majeure clause applied to the cost of replacement power that the generation company bought when the plant was shut down; this should have been a question for a jury. There were multiple factors that went into the corporation's decision that the generation company would purchase the replacement power, which entity had the financial reserves to purchase the replacement power, and the subsidiaries' continuing business ...