WTEC Energy v. TS Conductor Corp., et al.

CourtDistrict Court, D. New Jersey
DecidedJune 29, 2026
Docket2:24-cv-05810
StatusUnknown

This text of WTEC Energy v. TS Conductor Corp., et al. (WTEC Energy v. TS Conductor Corp., et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WTEC Energy v. TS Conductor Corp., et al., (D.N.J. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

WTEC ENERGY,

Civil Action No. 24-5810 (JXN)(AME) Plaintiff,

v. OPINION

TS CONDUCTOR CORP., et al.,

Defendants.

NEALS, District Judge Before the Court is a motion to dismiss: (1) Defendants TS Conductor Corporation (“TSC”) and Jason Huang’s (“Huang”) Counterclaim against Plaintiff WTEC Energy (“WTEC”); and (2) TSC’s Third-Party Complaint against Third-Party Defendant Brian Singh (“Singh”) (with WTEC, “WTEC Defendants”). (ECF No. 47.) Jurisdiction is proper pursuant to 28 U.S.C. § 1332. Venue is proper pursuant to 28 U.S.C. § 1441. The Court has carefully considered the parties’ submissions and decides this matter without oral argument pursuant to Federal Rule of Civil Procedure1 78 and Local Civil Rule 78.1. For the reasons set forth below, the WTEC Defendants’ motion to dismiss is GRANTED.

1 “Rule” or “Rules” hereinafter refer to the Federal Rules of Civil Procedure. I. BACKGROUND2 A. Statement of Facts Given the parties’ familiarity with this case, the Court provides only the facts necessary to decide the present motion.3 Unless otherwise indicated, the facts come from the Third-Party

Complaint. (See Third-Party Compl., ECF No. 35.) Huang founded TSC in 2019 to make and sell the TS Conductor, a new kind of transmission line.4 (Id. ¶¶ 5, 7,11.) Most transmission lines have inefficient and heavy steel cores. (Id. ¶ 6.) The TS Conductor uses a lightweight carbon core (the TS Core) surrounded by an aluminum tube. (Id. ¶ 7.) “The core and tubing is then wrapped or ‘stranded’ with aluminum wire to make an ‘overhead electrical conductor.’” (Compl. ¶ 2, ECF No. 1.) While looking for potential investors in 2018, Huang met Singh, WTEC’s CEO. (Third- Party Compl. ¶ 13.) At the time, WTEC exclusively made distribution lines.5 (Id. ¶¶ 14–15.) But, according to TSC, Singh hoped to expand WTEC’s business into other areas of electrical distribution. (Id. ¶ 16.) During this meeting, Singh allegedly offered to have WTEC serve as TSC’s

exclusive “strander.” (Id.) Huang orally agreed, subject to four conditions: (1) the WTEC Defendants would introduce Huang and TSC to prominent industry leaders; (2) WTEC would fund the TS Conductor’s

2 The following factual allegations are accepted as true for the purposes of deciding this motion. Sheridan v. NGK Metals Corp., 609 F.3d 239, 262 n.27 (3d Cir. 2010). 3 For a fuller recitation of the facts, please review the Court’s June 30, 2025, Opinion on TSC’s Motion to Dismiss. (Op., ECF No. 27.) 4 Transmission lines carry high voltage electricity from power plants to substations. See Electricity Explained, U.S. Energy Info. Admin., https://www.eia.gov/energyexplained/electricity/delivery-to-consumers.php (last visited June 25, 2026). 5 Distribution lines deliver low voltage electricity from substations to customers. See Electricity Explained, U.S. Energy Info. Admin., https://www.eia.gov/energyexplained/electricity/delivery-to-consumers.php (last visited June 25, 2026). promotion and marketing; (3) WTEC would strand the TS Core “with quality and ensure that it would pass any required testing” and “build a new manufacturing facility or expand a current WTEC manufacturing facility with the equipment and capability to strand the TS Core”; and (4) TSC would receive “sufficient purchase orders for the TS Conductor from any of the potential

customers introduced by [the WTEC Defendants].” (Id. ¶ 18.) TSC alleges Singh agreed to Huang’s terms on WTEC’s behalf. (Id. ¶ 19.) The parties never reduced their agreement (“Oral Agreement”) to writing. (Id. ¶ 20.) TSC, however, claims the parties understood that: (1) “WTEC would immediately start expanding its existing Florida manufacturing facility and obtain the proper equipment to enable it to strand the TS Core”; (2) WTEC’s Florida facility would be “solely dedicated to the TS Core”; (3) WTEC’s “compensation as a strander would be a concrete fee and not contingent on the price of the TS Conductor; and (4) “WTEC had the option to purchase the TS Core directly from TSC, strand the TS Core, and subsequently sell the complete TS Conductor on its own.” (Id. ¶¶ 21–24.) TSC further asserts that the parties, at no point, intended to form a joint venture or partnership. (Id. ¶¶

25–26.) Over the next two years, TSC claims the WTEC Defendants fulfilled the first two conditions of the Oral Agreement: introductions to industry leaders and marketing the TS Conductor. (Id. ¶¶ 28–29.) During pitches to potential investors and customers, Huang explained that WTEC agreed to strand the TS Core and build a new manufacturing facility solely dedicated to stranding the TS Core. (Id. ¶ 33.) According to TSC, a WTEC executive present during pitches6 assured “customers that WTEC would be ready and able to strand the TS Core upon receiving any purchase orders for the TS Conductor.” (Id. ¶ 34.)

6 WTEC Chief Commercial Officer Dave Frank. But, in TSC’s telling, the WTEC Defendants failed to satisfy the third condition of the Oral Agreement: strand the TS Cores, ensure the TS Cores passed testing, and build a facility to strand the TS Cores. WTEC’s existing equipment could not make “annealed trapezoidal aluminum strands,” but WTEC allegedly failed to buy the necessary equipment to do so. (Id. ¶ 39.) Because

WTEC could not strand the TS Core, TSC imported stranded TS Conductor samples from China for testing. (Id. ¶ 40.) WTEC funded the testing, which the TS Conductor passed. (Id. ¶¶ 41–42.) During the 2020 COVID-19 pandemic, “WTEC reduced its spending across the board,” cut staff, and stopped marketing or promoting the TS Conductor. (Id. ¶ 44.) Huang apparently assumed the spending cuts would delay the “expansion of the WTEC Florida stranding facility.” (Id. ¶ 45.) To his surprise, Huang learned WTEC never did any work to expand the Florida facility. (Id. ¶ 46.) Huang then asked Singh whether WTEC would be able to perform on the Oral Agreement. (Id. ¶ 48.) Singh replied that WTEC could not. (Id.) TSC looked for other stranders, albeit unsuccessfully. (Id. ¶¶ 49, 59.) By late 2021, TSC raised $25 million from investors. (Id. ¶ 55.) TSC used those funds to build its own California

manufacturing facility in 2023, where it makes and strands TS Cores in-house. (Id. ¶¶ 56, 59.) TSC then raised another $60 million in July 2024, which it used to open a South Carolina manufacturing facility in 2025. (Id. ¶¶ 62–63.) TSC claims it did not meet any of its investors through the WTEC Defendants. (Id. ¶¶ 55, 62.) B. Procedural History On May 2, 2024, WTEC sued Huang and TSC for breach of the Oral Agreement, unjust enrichment, breach of an implied joint venture, and breach of fiduciary duty. (See Compl.) TSC and Huang moved to dismiss (see TSC Mot. to Dismiss, ECF No. 22), which the Court denied in its entirety (see Op). Relevant here, the Court concluded that WTEC adequately alleged that a joint venture agreement existed between WTEC and TSC. (Id. at 5–10.) TSC and Huang filed a Counterclaim against WTEC (see Countercl., ECF No. 34), and TSC filed a Third-Party Complaint against Singh. (See Third-Party Compl.) The Counterclaim

includes claims for fraud, breach of contract, and breach of fiduciary duty. (See Countercl.) The Third-Party Complaint alleges fraud and breach of fiduciary duty. (See Third-Party Compl.) Both pleadings assert that WTEC’s lawsuit has caused TSC to lose $230 million in fundraising and $100 million in value. (See Countercl. ¶¶ 66–67; Third-Party Compl.

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