Gordonsville Energy, L.P. v. Virginia Electric & Power Co.

By Judge Randall G. Johnson

In this breach of contract action between Gordonsville Energy, L. P. (“GELP”) and Virginia Electric,and Power Company (“Virginia Power”), the court must decide whether the parties’ contract provision for liquidated damages is enforceable. In a letter opinion and order dated May 29, 1996, the court held that in spite of clear and specific contract language requiring GELP to pay liquidated damages of $600,000 a day to Virginia Power upon GELP’s breach of contract, and which also purportedly waives all defenses which GELP might have to the payment of such damages,…