ADA-ES Wins $12M in Calgon Marketing Contract Spat

July 30, 2010 – In The News

A federal jury in the U.S. District Court for the Western District of Pennsylvania has handed down a $12 million verdict -- $3 million for past damages and $9 million for future damages -- in favor of ADA-ES Inc., represented by Fox Rothschild, in its contract fight with Calgon Carbon Corp. over the marketing of mercury removal products to the electric power industry.

The litigation was launched in September 2008 by Calgon over a March 2007 memorandum of understanding between Calgon and ADA-ES to jointly market powdered activated carbon (PAC) products to the electric power industry for the removal of mercury from coal-fired power plant flue gas. Calgon terminated the contract in July 2007, providing 30 days' notice as required under the agreement.

In March 2008, Midwest Generation, an independent power producer in Illinois, signed a supply agreement with Calgon, and ADA-ES asked for commissions on the agreement, claiming it was required under the memorandum. Calgon then filed a lawsuit seeking a declaratory judgment it had no obligation to pay ADA-ES commissions or compensation for any sales or supply contracts or agreements entered into after August 2007.

ADA-ES responded by asserting counterclaims for breach of contract and unjust enrichment, arguing the PAC products were jointly marketed to Midwest Generation and Calgon owes ADA-ES a commission, since the memorandum provides that “all provisions of this agreement shall survive any termination of this agreement as necessary to effectuate the parties' residual rights and obligations following any such termination.”