Texas business alleges breach of contract by Bloom Energy

By Molly English-Bowers | Feb 8, 2016

GALVESTON – An Alvin company is suing a California energy business, alleging a business deal gone bad and a written contract broken.

Unicat Services Inc. of Alvin filed the lawsuit Feb. 2 in Galveston County District Court against Bloom Energy Company, of Sunnyvale, California, alleging breach of contract, performance and promissory estoppel, fraud and fraudulent inducement and deceptive trade practices.

According to the complaint, in early 2013, Bloom Energy contacted Unicat to service fuel cell canisters that the defendant uses in connection with its fuel cell energy generating business. As of July 3, 3013, the parties had a written agreement consisting of the terms outlining their relationship, the suit says.

However, because of some operational delays, the lawsuit states, the facilities Unicat built to service the defendant's needs did not go online until October 2013. After Bloom sought a lower price per canister than originally agreed upon, Unicat accepted the decrease because it has already invested in facilities, hired seven employees and did not want to see a complete breakdown in its operations, the suit says.

In 2015, the lawsuit alleges, Unicat noticed Bloom was dropping the number of fuel cell canisters needing service. That summer, the suit says, during the middle of the plaintiff's expansion efforts, the defendant unilaterally, and without warning, terminated the business relationship.

Unicat Services seeks monetary damages, interest, attorney fees, exemplary and punitive damages and other relief the court deems appropriate. It is represented by Steve Lundwall of Lundwall Law PLLC in Sundance, Utah, and  Houston.

Galveston County District Court Case number 16-cv-32

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