Chinese Company’s Wind-Farm Transaction Lawsuit Dismissed

A Chinese-owned company’s lawsuit over an Oregon wind-farm transaction that was blocked by the Obama administration was dismissed by a judge in Washington who said he lacks the authority to hear the case.

“The parties to this transaction are not located in the district, they did not negotiate their transaction in the district, nor are any of the assets at issue located in the district,” U.S. District Judge Royce Lamberth wrote in dismissing the complaint brought by Ralls Corp.

Tim Xia, an attorney for Ralls, said the company is disappointed by the ruling and will file a new complaint in a New York federal court.

Ralls was seeking a court order to void its agreement to buy assets for the wind-farm project from Terna Energy Holding USA Corp., a unit of Terna Energy SA (TENERGY), a Greek energy company.

“We are gratified by the decision and believe it is correct,” Howard Hogan, an attorney for Terna, said in a phone interview.

Ralls sought to void the transaction because it hasn’t made a $4.2 million payment to Terna that was due in December and wants to prevent the sale of collateral pledged in the deal.

Ralls is owned by executives of China-based Sany Group Co., which was seeking to place Sany-made wind turbines at the Oregon installations.

Federal authorities claimed national security risks in ruling after the acquisition that Ralls couldn’t own or operate the wind project because it was close to a U.S. Navy base.

Ralls also is suing President Barack Obama and other officials, challenging their power to block the project.

The dismissed case is Ralls Corp. v. Terna, 13-cv-00117, U.S. District Court, District of Columbia (Washington). The case against the U.S. government is Ralls Corp. v. Committee on Foreign Investment in the United States, 12-cv-01513, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: Andrew Zajac in Washington at azajac@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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