A high-stakes legal battle has erupted in the renewable energy investment sector, pitting a prominent investment firm against several defendants accused of multiple breaches and interference. Lacuna Sustainable Investments, LLC and Lacuna Sustainable Partners, LLC filed a comprehensive complaint on July 16, 2024, in the Superior Court of California, County of San Francisco, against New Energy Capital Partners, LLC; Victory Capital Management, Inc.; Curt Whittaker; Rath, Young & Pignatelli, P.C.; NECICF II GP, LLC; Mark Lerdal; Greenberg Traurig, P.A.; and other unnamed parties.
The plaintiffs allege that the defendants engaged in intentional interference with contractual relationships and prospective economic advantages. They also accuse the defendants of aiding and abetting breaches of fiduciary duty. According to the complaint, Lacuna Sustainable Investments (LSI) and Lacuna Sustainable Partners (LSP) are Delaware limited liability companies involved in managing investments in renewable energy projects. The crux of their allegations centers around a series of General Services Agreements (GSAs) and Limited Liability Company Agreements (LLC Agreements) they entered into with various entities managed by or associated with the defendants.
The complaint outlines how New Energy Capital Partners (NEC), now a franchisee of Victory Capital Management following an acquisition on November 1, 2021, allegedly sought to usurp control over LSI for its benefit. Plaintiffs claim that NEC's actions were driven by new incentive structures introduced post-acquisition that motivated NEC employees to increase assets under management (AUM). This was purportedly done at the expense of LSI's interests.
One particularly damning accusation involves Curt Whittaker and Mark Lerdal. Whittaker is described as having held himself out as outside counsel to NEC while allegedly working to undermine LSI from within. Similarly, Lerdal is accused of conspiring with NEC to gain control over LSI for personal gain. "Fox asked Lerdal if he could 'run' LSI," states one part of the complaint, indicating an orchestrated effort to manipulate internal dynamics at LSI.
Further complicating matters are allegations against Rath Young & Pignatelli and Greenberg Traurig law firms for representing conflicting interests without proper waivers or compliance with professional conduct rules. Plaintiffs assert that these firms acted on behalf of NEC Defendants while ostensibly representing other parties involved in ongoing transactions.
Plaintiffs seek multiple forms of relief from the court: compensatory damages for economic harm suffered due to alleged interference and breaches; punitive damages for actions undertaken with malice or fraud; pre- and post-judgment interest; attorneys' fees; and declaratory relief regarding conflicts of interest involving legal representation.
Representing the plaintiffs is Matthew B. Dart from Dart Law Firm. The case has been assigned Case No. CGC-24-616430 in front of judges yet to be named.