Mitsubishi ready to defend US$4 bil. claim over shuttered US nuke plant
AFPTOKYO--Japan's Mitsubishi Heavy Industries said Thursday it would defend itself against a US$4 billion damages claim in the U.S. over a shuttered nuclear power plant amid allegations of faulty equipment.
October 18, 2013, 12:05 am TWN
Southern California Edison (SCE) and its subsidiary Edison Material Supply are asking for arbitration over the claim against Mitsubishi and its wholly owned U.S. subsidiary Mitsubishi Nuclear Energy System.
The original dispute, first raised in July, says SCE had to close San Onofre Nuclear Generating Station because replacement steam generators supplied by Mitsubishi were defective.
SCE owns 78 percent of the power plant.
The arbitration, intended to avoid a court battle, is being sought because the two sides have so far failed to reach agreement.
“Through the arbitration process, Mitsubishi will aggressively defend itself by accurately representing the facts involved and the applicable legal principles,” the company said in a statement released in Tokyo.
Mitsubishi says its contract with the U.S. companies limits liability to a maximum US$137 million and excludes consequential damages such as the cost of replacement power.