Case Explained: Alta Power, L.L.C. Plaintiff— v. General Electric International, Incorporated Defendant—

Court: United States Court of Appeals for the Fifth Circuit Filed: 2026-07-01 The Fifth Circuit affirmed the district court’s grant of summary judgment to General Electric International, Inc., holding that a mutual consequential-damages waiver in a Master Agreement between Alta Power, L.L.C. and WattStock was enforceable against Alta by GE as an intended third-party beneficiary. The court applied Texas contract law standards, rejecting Alta’s three primary arguments: first, that GE qualified as an intended third-party beneficiary because the waiver’s plain language covering “subcontractors” clearly and unequivocally extended to GE, a party who entered into an agreement with WattStock, regardless of whether it held that status at the time of the alleged tortious conduct; second, that the waiver remained enforceable despite allegations of fraudulent inducement, relying on *Bombardier Aerospace Corp. v. SPEP Aircraft Holdings, LLC*, which established that sophisticated parties represented by counsel may bargain to limit liability for consequential damages even when fraud is alleged, provided actual damages remain recoverable; and third, that the waiver applied to intentional tort claims, as the phrase “any cause of action including negligence” was interpreted expansively under Texas law to include intentional torts rather than limiting the scope to the listed examples. The practical consequence is that Alta’s tort claims against GE are barred by the contractual waiver, and the dismissal of all claims with prejudice stands. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.