Friday, October 18, 2013
M'bishi Heavy To Fight U.S. Utility On Nuclear Plant Liability
TOKYO (Nikkei)--Mitsubishi Heavy Industries Ltd. (7011) plans to fight fire with fire by bringing a counterclaim against a U.S. utility seeking compensation for damage linked to equipment supplied by the Japanese firm.
Mitsubishi Heavy sold steam generators to Southern California Edison in 2009-10, which were installed at the San Onofre nuclear power plant. After a small amount of radioactive water was found leaking from the generator in 2012, the utility decided to decommission the plant.
Southern California Edison has requested arbitration from the International Chamber of Commerce, seeking 4 billion dollars in damages from Mitsubishi Heavy. The Japanese company, which has retained a U.S. law firm for its defense, maintains that its liability is limited to the 137 million dollars specified in the contract. It also claims damages from Southern California Edison's inappropriate handling of the repair and reopening of the San Onofre facility, and is looking for compensation from the utility.
Along with its written response, it plans to have top officials testify as necessary. Arbitration proceedings are expected to take more than a year.
Mitsubishi Heavy says it expects no impact on its earnings from the case, citing its limited liability and its appropriate execution of the contract.
(The Nikkei, Oct. 18 morning edition)