Overview
(September 18, 2023, Washington, DC) – The US District Court ruled in favor of Steptoe client, Korea Electric Power Corp. and Korea Hydro & Nuclear Power Co, Ltd. (KEPCO/KHNP) in their dispute with Westinghouse Electric Company (Westinghouse) regarding KEPCO/KHNP’s nuclear plant design.
In late 2022, Westinghouse sued KEPCO/KHNP in US District Court for the District of Columbia, contending that the Korean companies failed to comply with obligations under the Atomic Energy Act’s Part 810 regulations when they transferred certain technical information to other foreign countries as part of bids to build nuclear facilities. Westinghouse claimed that the plant design was based on technology it had licensed to KEPCO/KHNP, and that those companies failed to cooperate with it in meeting its regulatory reporting obligations with respect to the bids.
KEPCO/KHNP moved to dismiss the Complaint, contending both that the parties' contractual agreements required that any dispute over their terms must be arbitrated in Korea and that Westinghouse lacked a private right of action to sue directly for KEPCO/KHNP’s alleged failure to comply with U.S. regulatory obligations. In a decision issued on September 18, 2023, the District Court agreed with KEPCO/KHNP, dismissing the claims outright. It concluded that Westinghouse had "disclaimed" any desire to seek relief under the parties' contract, and thus that there was no reason to decide the arbitrability question. It held, however, that Westinghouse's effort to enforce the Atomic Energy Act (AEA) regulations could not proceed because Westinghouse lacked a private remedy under federal law. The exclusive authority to enforce the AEA and its regulations lay with the Attorney General, and there was no indication in the statute or its regulations that private parties could sue.
Steptoe’s litigation team was led by partner Steve Davidson, with the assistance of partner Shannen Coffin and of counsel Mark Murphy. Additional team members include partners Ed Krauland, Lucinda Low, and Jamie Lucia, of counsel Jack Hayes, and associates Gammon Fain and Quentin Johnson. The team was assisted by paralegal Riley John and legal executive assistant Diane French.
About Steptoe
In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and other professional staff across offices in Beijing, Brussels, Chicago, Hong Kong, London, Los Angeles, New York, San Francisco, and Washington. For more information, visit www.steptoe.com.
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