Judge: Mitsubishi may proceed with case against GE (Updated)

U.S. District Judge J. Leon Holmes ruled late Monday (Aug. 23) that Mitsubishi Power Systems may proceed with its lawsuit against GE.

"The judge’s denial of GE’s motion will ensure that a judge will hear the facts of a case that describes how GE seeks to monopolize the market for variable speed wind turbines in the United States,” Mitsubishi spokeswoman Sonia Williams said in a statement.

Updated info: Holmes ruling does temporarily halt action on the case until a patent infringement case is resolved.

"Nevertheless, we are heartened by his suggestion that he may terminate the stay if he finds appropriate circumstances," Williams added.

On Aug. 9, the parties gathered in Little Rock to hear GE’s motion to dismiss or stay the case that could affect plans to build a $100 million wind turbine plant in Fort Smith (Chaffee Crossing) that would employ 400 workers.

Mitsubishi Power Systems Americas (MPSA) announced on Oct. 16 plans to build a $100 million, 200,000-square foot wind turbine manufacturing plant on 90 acres at Fort Chaffee. The plant could employ up to 400 once fully operational. Company officials said construction will start in the fourth quarter of 2010 and be complete by the fourth quarter of 2011. Mitsubishi officials expect full production and 400 jobs in place by the first quarter of 2012.

Mitsubishi officials originally said an unfavorable legal outcome could jeopardize construction of the plant. They have since said the plant will be built, but its becoming fully operational may depend on the court and patent rulings.

Mitsubishi on May 20 filed a lawsuit in the U.S. District Court for the Western District of Arkansas claiming that General Electric has engaged “a scheme to monopolize the market for variable speed wind turbines in the United States.”

GE filed a 30-page response June 25 asking the court to dismiss or stay the Mitsubishi lawsuit pending ongoing legal action in Texas and ongoing patent proceedings between the two companies.