Texas Supreme Court Reverses $125 Million Arbitration Award
In Tenaska Energy, Inc. v. Ponderosa Pine Energy, LLC, the trial court vacated a $125 million arbitration award in a dispute over the sale of a power plant. After the court of appeals reinstated the arbitration award, Tenaska appealed to the Supreme Court of Texas. Tenaska argued that the award should be vacated due to the evident partiality of the arbitrator, who failed to disclose the full scope of his contacts with opposing counsel and their law firm. The Texas Supreme Court agreed, vacated the $125 million arbitration award, and remanded for a new arbitration. Tenaska Energy, Inc. v. Ponderosa Pine Energy, LLC, 437 S.W.3d 518 (Tex. 2014).