Taiwan High Court favours Shaw in nuclear power case

The Shaw Group has received a favourable ruling from the Taiwan High Court related to Taiwan Power Company’s Lungmen Nuclear Power Project.

The company received formal notice of the High Court’s ruling on 5 January 2011, affirming an arbitration award that ordered Taiwan Power Company to pay Shaw approximately $27m (£17.4m) in damages for increased costs caused by Taiwan Power Company.

The court also dismissed Taiwan Power Company’s counterclaims in their entirety.

The High Court ruling follows favourable decisions from both the Arbitration Association of the Republic of China and the Taipei District Court, which also dismissed all claims from Taiwan Power Company.

There is still the possibility Taiwan Power Company will appeal to the Taiwan Supreme Court, which may or may not decide to hear an appeal if it is filed, regardless, Shaw is making no adjustments to its financial results or its previously issued earnings guidance.