The U.S. District Court for the District of Massachusetts has ruled that one party breached its contract with another when it demanded adequate assurances because of mistrust stemming from a dispute in unrelated bankruptcy proceedings.
According to the opinion, after the relationship between a Solar Renewable Energy Credits (SREC) consolidator and trader and an independent SREC energy producer soured over conduct during an unrelated bankruptcy court case, both companies alleged breach of contract. The plaintiff in this case, Skyview Finance, is an SREC consolidator and trader engaged in reselling to load-serving entities or utilities. Defendant Kearsarge Trading, is an independent producer of renewable energy that generates SRECs.
