White Current Corp. v. Vermont Electric Cooperative, Inc.

609 A.2d 222, 158 Vt. 216, 1992 Vt. LEXIS 46
CourtSupreme Court of Vermont
DecidedJanuary 31, 1992
Docket90-083
StatusPublished
Cited by18 cases

This text of 609 A.2d 222 (White Current Corp. v. Vermont Electric Cooperative, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Current Corp. v. Vermont Electric Cooperative, Inc., 609 A.2d 222, 158 Vt. 216, 1992 Vt. LEXIS 46 (Vt. 1992).

Opinion

Allen, C.J.

This interlocutory appeal focuses on a letter of intent executed by appellant electric cooperatives (Vermont Electric Cooperative, Inc. and its subsidiary Vermont Electric Generation and Transmission Cooperative, Inc.) and appellee White Current, Inc., a small power producer. During the liability phase of a bifurcated trial, the jury found that the letter constituted a binding contract for the purchase of electrical energy which the cooperatives breached. The court entered a partial final judgment for White Current.

After the court denied their motion for judgment notwithstanding the verdict, the cooperatives filed a motion pursuant to V.R.A.P. 5(b) for leave to file an interlocutory appeal. The court granted the motion and certified the following questions:

(1) Whether failure of all or any party to Exhibit No. 4 [the letter of intent] to submit to the Public Service Board for approval, as required by General Order 45, an agreement contemplating the purchase and sale of electricity produced by a hydroelectric facility in Vermont rendered the agreement unenforceable.
(2) Considering the evidence in the light most favorable to the Defendants, whether there was any evidence to fairly and reasonably support the jury’s special verdict that the power sale agreement embodied in Exhibit No. 4 was subsequently orally modified.
*219 (3) If the answer to Question No. 2 is affirmative, whether subsequent oral modification of Exhibit No. 4 would render Exhibit No. 4 unenforceable as contrary to the Statute of Frauds.

The trial court found that these were controlling questions of law on which there were substantial grounds for difference of opinion and that their resolution would materially advance the termination of the litigation. We answer the first two questions in the negative, do not reach the third, and remand the case for a trial on damages.

The trial court opined that the interests of judicial economy would be well served if the Supreme Court considered all appealable issues related to the partial judgment. At the cooperatives’ ■ request, the court certified an additional eighteen questions without making any findings that they were controlling, substantial or would advance the litigation.

The cooperatives raise four main issues in their brief: (1) whether the trial court properly submitted the letter of intent to th.e jury to determine whether it was a binding contract, (2) whether the court properly excluded expert testimony, (3) whether White Current’s failure to file the letter with the Vermont Public Service Board rendered it unenforceable, and (4) whether the trial court properly considered the issue of oral modification of the letter. The first two were not properly certified by the trial court, and we decline to address the first for reasons stated herein. We consider the second because it was contested below and properly preserved. We consider the cooperatives’ third and fourth arguments, but decline to adopt their formulation of the oral modification issue and address that issue as certified by the trial court.

FACTS

White Current, a qualifying small power producer under federal law, began to develop a hydroelectric site on the Ottauquechee River in Hartland in the late 1970s. Soon after White Current commenced this project, the cooperatives started their own larger project one mile upstream. Fearing the effects of proposed stream impoundments that would result from construction at the cooperatives’ site, White Current indicated its intention to intervene in related regulatory proceedings. Con *220 cerned with delays that might result from such intervention, the cooperatives prepared the letter of intent which was executed by the parties.

The letter provided that the parties enter into a power sales agreement, after obtaining the necessary regulatory approvals, according to “essential terms” set forth in the letter. The terms specified that White Current would sell, for an initial period of ten years, the net output of its planned 432-kilowatt generator to the cooperatives at a price equal to 85% of the cooperatives’ generation costs at their upstream project. The letter contained specific price terms for the period before the cooperatives’ project was to become operative. In the final paragraph of the letter, the parties agreed to resolve any disputes concerning the impact of the cooperatives’ project on White Current’s ability to generate power exclusively through the Federal Energy Regulatory Commission (FERC). The letter was not filed with the Public Service Board (PSB) pursuant to its General Order 45, which requires utilities to file all contracts, including letters of intent, for the purchase or sale of electrical energy.

One impact of the cooperatives’ project was to cause intermittent increases in stream flow, which White Current’s planned 432-kilowatt generator could not accommodate. White Current therefore modified its original plan and installed a second, larger generator designed to meet this new condition. Roger Lamson, White Current’s principal, testified at trial that the cooperatives agreed to purchase the output from that generator as well, but that the agreement was never reduced to writing. With both generators on line, White Current operates at approximately 2000 kilowatts and the project is now leased to a third party.

After the parties signed the letter of intent, White Current intervened in the cooperatives’ FERC proceedings out of continuing concern for stream flow coordination between the two projects. Because of this intervention, the cooperatives refused to execute a formal power sales agreement or purchase any power generated by White Current. White Current then sued the cooperatives for breach of contract.

One week before the trial on liability, the cooperatives announced their intention to call expert witnesses to testify about the custom and usage of letters of intent in the utility industry. *221 They did not identify the experts until a few days before trial and did not file notice with the court until the eve of trial. The trial court excluded this testimony. At the request of the parties, the court submitted written interrogatories to the jury on the issue, of whether the letter of intent was a binding contract for the purchase of output from the 432-kilowatt generator. The jury found that the letter represented a binding agreement which the cooperatives had breached. While the jury deliberated, the parties agreed to submit additional interrogatories to the jury on whether the contract had been modified or whether the parties entered into a separate oral agreement for power from the second larger generator. Counsel did not present argument on this issue, and the court submitted it to the jury without significant instruction. The jury found an oral modification. After reviewing the testimony, the court ruled that there was no evidence to support this finding and entered a partial final judgment for White Current on all questions of liability concerning the 432-kilowatt generator.

I.

Initially, we address the matter of questions and issues not properly certified for review pursuant to V.R.A.P. 5(b).

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Bluebook (online)
609 A.2d 222, 158 Vt. 216, 1992 Vt. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-current-corp-v-vermont-electric-cooperative-inc-vt-1992.