GAW Miners Sued for Breach of Contract

A Mississippi electric company has filed suit against GAW Miners for non-payment and breach of contract.

According to court documents, Mississippi Power Company (MPC) is seeking repayment of roughly $224,000 in services, as well as nearly $50,000 in costs incurred specifically for servicing GAW.

MPC is looking to collect an additional $73,493.48, an amount the utility claims it is entitled to as a result of the alleged breach of contract.

The suit was filed on 8th April in the Southern District Court for the Southern District of Mississippi. The electric utility is being represented by Mississippi-based law firm Balch & Bingham LLP.

In total, MPC is seeking $346,647.29 plus interest and any court fees associated with the suit.

The complaint stated:

“By GAW failing to make payments on a monthly basis for electric service provided by MPC, it is in breach of the contract. Additionally, by failing to complete the one-year term under the contract, GAW is in breach of the contract. Due to GAW’s breach of the contract, MPC has suffered certain damages, including, but not limited to, the Installation Cost, the Monthly Minimum Amounts and the Past Due Balance.”

The lawsuit comes months after GAW discontinued its mining operations.

The move to cease mining, which at the time the company attributed to unfavorable conditions and cost issues in a notice posted to the ZenCloud cloud mining platform, stirred controversy among customers due to the sudden nature of the shutdown.

Customers first

became aware of the previously unannounced shutdown on 30th January, several days after MPC claimed in its court filing that it shut off service to GAW's Purvis, Mississippi data center.

Breach of contract alleged

The court filing stated that GAW became an MPC customer in late September 2014, with electric service commencing in mid-October. Prior to the start of electric service, MPC said, it spent $49,335.20 installing transformers and equipment to provide GAW’s data center with power.

MPC alleged in its complaint that GAW failed to meet its payment obligations, making only a single payment between the start and termination of services.

"MPC began to provide electric service to GAW on or about October 15, 2014. Since that time, MPC has billed GAW on a monthly basis. To date, GAW has only made one payment to MPC for the electric service provided, despite MPC's monthly billing statements being sent to GAW," the company alleged in the complaint.

On 27th January, the filing stated, MPC shut off electric service at GAW's request.

Following the cessation of services, the filing explained, MPC unsuccessfully sought repayment of the funds it said are owed by GAW. Documents submitted in the complaint include an invoice dated 10th February, requesting payment of $223,818.61, as well as a 6th March demand letter from Balch & Bingham.

In a post on the HashTalk community forum, GAW CEO Josh Garza said that the suit arose as a result of “a dispute over the fee structure”.

Neither GAW nor MPC immediately responded to requests for comment.

The full court filing can be found below:

Mississippi Power Company vs. GAW Miners, LLC

Powerline image via Shutterstock