Appellate Court Recap: Biogas Company’s $6 Million Verdict Revisited, $868,000 Damages Upheld

Denver, CO – The Tenth Circuit Court of Appeals has provided further clarification on a previous ruling regarding a breach of contract case involving a biogas company. In their decision, the court allowed for almost $900,000 in damages to stand, despite vacating a $6 million jury award.

The ruling came as a partial granting of a petition for rehearing from Lambland Inc., an organic recycling service. The court acknowledged and upheld the jury’s verdict of $868,000 in diversion damages.

Lambland had filed a lawsuit against Heartland Biogas LLC, alleging a breach of their 2015 agreement. The agreement revolved around Lambland providing waste materials to Heartland Biogas for the production of biogas.

It was discovered in 2016 by local authorities in Colorado that Heartland Biogas had failed to obtain the required permits, leading to the legal dispute.

The recent decision by the Tenth Circuit Court of Appeals reaffirms the significant amount of damages awarded to Lambland in recognition of the harm caused by Heartland Biogas’ breach of contract. While the original $6 million jury award was vacated, the court’s ruling ensures that almost $900,000 in diversion damages will be paid to Lambland.

This ruling highlights the importance of adhering to contractual obligations and obtaining proper permits within industries such as biogas production. The consequences of failing to do so can result in significant financial repercussions, as seen in this case.

Both Lambland Inc. and Heartland Biogas LLC have not yet provided any public statements regarding the recent court decision. It remains to be seen if either party will pursue further legal action or attempt to reach a settlement.

In summary, the Tenth Circuit Court of Appeals has clarified its previous order, allowing for nearly $900,000 in damages to be paid in a breach of contract case involving Lambland Inc. and Heartland Biogas LLC. While the original $6 million jury award was vacated, the court’s ruling emphasizes the significance of upholding contractual agreements and obtaining necessary permits in the biogas industry. Neither party involved has issued any public statements about the decision at this time.