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Enron Mail |
Randy,
We were recently informed that Renault is being sued for U$S 3MM in damages by Ecogas for early termination of their 5 year contract, in order to contract our services. As a condition to withdraw the claim, Ecogas requires that Renault get back on their system and settle the damages with a U$S 30.000 payment. Our team feels that if Renault chooses to do so, Enron would lose its strongest client as well as the regulatory battle. Renault's attorney met with Guillermo Canovas (Regulatory Affairs Director) in our office yesterday. Guillermo feels that the reason he paid us the visit was to try to measure how far Enron would go to back them up if they decided not to settle. Apparently, Renault hinted about Enron covering their judicial costs in the event they lost the suit (estimated U$S 600.000/U$S700.000). Guillermo did not agree to this. Guillermo accepted to meet with their attorney and legal director in our offices on Tuesday afternoon. Renault has required that Jos, M. de Hoz be present at the meeting and Guillermo agreed. Apparently, Renault was assured that they would have the best regulatory and legal support available on gas issues because it was in our best interest for them to win the case. Guillermo also mentioned to me that in order to be sure that Renault supports its case appropriately, we would draft their counterclaim (at least the substantial part of it) to be filed in court. I informed Guillermo that since Jos, M. de Hoz is not Renault's attorney he would not be able to legally advise them. I also stated my concern regarding our potential liability for participating in the drafting of a document to be filed in court by Renault. Despite this, they have insisted Jos, be present at the meeting and have clearly stated that as we have already done in the past for other clients before the Enargas, we have to draft the response for Renault. I am not sure if commercial discussions could eventually lead to Enron agreeing to pay for Renault's judicial costs. I was informed of this meeting and the agreements made there after they took place. I am not comfortable with the fact our client is now relying on Jos, and Enron to help them in court. Since this is a delicate situation, I think we need to talk in order to figure out what we can and can not do. Please let me know when it is of your convenience. Thanks. Regards, Andrea
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