Novel Energy Solutions, the Saint Paul-based community solar developer founded by the Kaehler family in 2012, has been named in several lawsuits over the past decade, including a January 2026 consent judgment of $1,471,285 in favor of KeyBanc Capital Markets, a contract case brought by REA Investments in which a Minnesota federal judge granted partial summary judgment against the company, two employment suits, and an earlier controversy in Winona County that ended without litigation against the company itself.1PacerMonitor. KeyBanc Capital Markets Inc. v. Novel Energy Solutions, LLC
The KeyBanc Capital Markets Judgment
The largest financial exposure on the docket came from KeyBanc Capital Markets Inc., which sued Novel Energy Solutions in January 2025 in the U.S. District Court for the Southern District of New York. The case, before Judge P. Kevin Castel, was filed as a general contract dispute under diversity jurisdiction. Novel Energy Solutions answered in March 2025 and asserted counterclaims.2Leagle. KeyBanc Capital Markets Inc. v. Novel Energy Solutions, LLC
The parties resolved the matter roughly a year later with a consent judgment entered January 28, 2026, awarding KeyBanc $1,471,285. The specifics of the underlying contract have not been publicly detailed beyond the court’s docket classification. In April 2026, the court clerk issued certifications allowing KeyBanc to register the judgment in another district, a step ordinarily taken to reach assets outside the court’s home jurisdiction.1PacerMonitor. KeyBanc Capital Markets Inc. v. Novel Energy Solutions, LLC
The REA Investments Contract Case
REA Investments, LLC filed suit against Novel Energy Solutions in 2023 in the U.S. District Court for the District of Minnesota. Chief Judge Patrick J. Schiltz presided, with Magistrate Judge John F. Docherty handling discovery.3PacerMonitor. REA Investments, LLC v. Novel Energy Solutions, LLC
REA alleged that Novel Energy Solutions withheld documents during discovery, including communications about agreements and relationships with specific firms. After discovery closed, REA moved to reopen it to obtain additional text messages and further document production. Novel Energy Solutions responded that REA had adequate notice during the original discovery window and failed to act diligently.4Midpage. REA Investments LLC v. Novel Energy Solutions
In May 2025, the magistrate judge denied REA’s motion, finding no “good cause” to modify the pretrial scheduling order nine months after fact discovery closed. The following month, Judge Schiltz granted REA’s motion for partial summary judgment in part and denied Novel Energy Solutions’ own summary judgment motion.3PacerMonitor. REA Investments, LLC v. Novel Energy Solutions, LLC
The case terminated in October 2025, but post-termination activity continued. In January 2026, Novel Energy Solutions filed a response opposing a motion for a new trial on damages, so the outcome on the damages side is not final.3PacerMonitor. REA Investments, LLC v. Novel Energy Solutions, LLC
Employment Lawsuits
Dillon v. Novel Energy Solutions (2023)
Daniel Dillon sued Novel Energy Solutions and Cliff Kaehler personally under the Family and Medical Leave Act. The action originated in Ramsey County District Court and was removed to the U.S. District Court for the District of Minnesota. In May 2023, the court denied Dillon’s motions for partial summary judgment and granted the defendants’ motion for partial summary judgment. The parties stipulated to dismissal in August 2023.5CourtListener. Dillon v. Novel Energy Solutions LLC
Teichert v. Novel Energy Solutions (2026)
Matthew Teichert filed a wrongful termination suit in March 2026 in Ramsey County District Court. The complaint asserts a whistleblower claim under Minnesota’s employee protection statute. The case is in its opening phase, with initial motions and supporting memoranda filed shortly after the complaint.6Trellis Law. Matthew Teichert vs. Novel Energy Solutions LLC
The Winona County Solar Controversy
The company’s earliest public dispute began in January 2013, when Novel Energy Solutions pursued a solar installation contract with Winona County, Minnesota. Co-founder Mena Kaehler had served as a county commissioner. The situation drew scrutiny after it emerged that the wife of Winona County Administrator Duane Hebert had become a bookkeeper for Novel Energy Solutions in the summer of 2013, and that Hebert himself was negotiating for part-ownership of the company. Hebert did not disclose those connections on his initial conflict-of-interest form.7Winona Post. County Investigation to Focus on Staff
Novel Energy Solutions separately alleged that Winona County had shared its proprietary information with competitors through a request for proposals. CEO Cliff Kaehler described the leaked information as the company’s “secret sauce” and said the breach could have an “astronomical” financial impact. An attorney for the company sent the county a letter threatening a lawsuit in March 2014.8Post-Bulletin. Winona County Hires Law Firm for Review of Solar Controversy
The Winona County Board hired the Minneapolis law firm Lockridge, Grindal, Nauen to investigate. The 52-page report led the board to vote unanimously in May 2014 to fire Hebert for being “improperly involved” in the solar project and failing to disclose his family’s financial ties to the company. County sustainability coordinator Anne Morse, who had been placed on leave, was reinstated after the report cleared her. The investigation also found that Novel Energy Solutions itself made “no efforts whatsoever to maintain the secrecy of any information at issue,” a finding that undercut the trade-secret theory.9Post-Bulletin. Winona County Fires Administrator Over Solar Controversy
Where Things Stand
Novel Energy Solutions holds an F rating from the Better Business Bureau, attributed to its failure to respond to six customer complaints; the company is not BBB-accredited.10Better Business Bureau. Novel Energy Solutions LLC BBB Profile Heading into 2026, the company faces the newly filed Teichert whistleblower case in Ramsey County, active collection on the KeyBanc judgment being registered in another district, and unresolved post-trial motions in the REA Investments matter.