Provisional attachment of real estate granted to secure a damages claim under a power plant equipment supply contract

The client company had engaged another company to manufacture and deliver equipment needed for a power plant construction project, but the delivered equipment failed to meet the performance guarantee standards in the contract.

When the problem was not resolved despite repeated performance tests and requests for improvement, the client terminated the contract and ordered replacement equipment, and applied for a provisional attachment of real estate owned by the opposing company to secure the resulting damages claim.

The key issues were whether the equipment's failure to meet performance standards constituted a breach of contract, and whether the costs of ordering replacement equipment could be recognized as a damages claim.

Another issue was whether it was necessary to attach the opposing company's real estate before the main lawsuit.

We analyzed the contractual performance guarantee obligations, the results of the repeated performance tests, the requests for improvement and the circumstances of the contract termination, and made a prima facie showing that a damages claim for breach of contract existed.

We also reviewed the opposing company's real estate and other assets, and argued that it was necessary to preserve the claim for future compulsory enforcement.

The court granted the application and ordered a provisional attachment of real estate owned by the opposing company. As a result, the client secured a protective measure for the future enforcement of its damages claim.