Southern Coal Sales Corporation v. Xcoal Energy & Resources et al

Filing 38

MEMORANDUM OPINION. Signed by Judge James C. Turk on 10/26/12. (med)

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a s OFFI u. . sT. URT CR s Dl K ATROANOKE, VA FI LED I TH E U N I N TED STA TES D I STRI T C O UR T C FO R TH E W ESTERN DI STRI O F V I G I I CT R N A R O AN O K E D I ISIO N V 2CT 25 2 1 92 J A .U ULI BY; ,CL ERK L ERK SOUTHERN COAL SALES CORP. , Pl ntf/ ai ifcount - e erdefndant , ) ) ) Cas N o. 7: 2- ve : 1 c 00265JCT M em orandum O pi on ni X CO A L EN ERG Y & R ESO U R CES, By:H on. m esC .Tur Ja k Se or Unied St e D i t i tJudg ni t at s s r c e De e f ndantc ount r pl ntf , / e - ai if and X C O AL EN ER G Y & RESO U R CES,LLC, and ER M E TH R ASH ER , De e f ndant. s ) ) ) Thi m a t r i be or t Cour on De e nt 'M oto t D i m i sCount 1 a l loft s te s f e he t f nda s in o s s s 1 nd I he Com pl nt ECF N o.1 Pl ntf tl d a r s ai . 9. ai if i e e pons a De e nt ha r ple ECF N o. 29. e nd f nda s ve e i d. 27, TheCour he d a gument on t m o i o Ocobe 22,201 a i i now rpef de son. t ar r s he ton n t r 2, nd t s i or cii De e nt m ove t di m i st fa c ai i Count1 on t o gr f nda s o s s he r ud l m n 1 w ounds Fi s , he a g . r t t y r ue t tPli iffie t plad fa wih t patculrt rquie by Rul 9( ,Fed.R.Ci P. ha antf ald o e r ud t he ri aiy e rd e b) v. . 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Asdic s i de a lbel t Cour GRANTS I PART a DENI I PART t s us ed n t i ow, he t N nd ES N he M oton t Di m i s Count 1 a 1 1 a diec s Pl i tf t fl an a e i o s s s 1 nd 1 , nd r t a n if o ie m nded Com pl i no l t r a nt t a e t n f t n da a t e r oft s Or . ha ouree ys fer nt y hi der 1 . 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C.j 1 2 be a e t e CS op ry n e hi ur' u j c te u idito nd r S. 33 c us h pa t sa e c tz n ofdif r tsa e a d t eamo ti c n r e s e e dst e s of$7 0 0. ri r ii e s e fe en t t s n h un n o tov r y xc e h um 5, 0 ECF No . 1 a !5. fnd n sd n tc ts t sCou ts urs ito ECFNo. , t!3. , t Dee a t o o one t hi r' j idcin. 21 a de i r pe i e ng M ar h 201 X c ,how e r r utne y r us d t a ce delve y oft lve y rod ndi c 2. oal ve , o i l ef e o c pt i r he c r c ualy de i na e vol es oft c lunde t pur has or r .2 A s oft f lng oft ont a t l s g t d um he oa r he c e de s he ii he Com pl i ,SCS ha de i r t X c la t a ofa oxi a el 450, 45 t of c l whi h a nt d lve ed o oa ot l ppr m t y 856. ons oa , c wa al of t coa or r by Xcoa durng t t pe i Xc l wa oblgae t pa s 1 he l de ed l i ha rod. oa s i td o y a oxi ael $45 m ilon f t co ,buthasonl pai a oxi a ey $ m ilon,a sil ppr m t y li or hat al y d ppr m t l 20 li nd tl owe a oxi ael $24. m ilon f c a r a de i r d.CountIas e t a br a h ofc r t s ppr m t y 5 li or oal le dy lve e s rs e c ontac c a m bas on t s f l es a a i i t d f iur st pe f by X c l li ed he e aiur nd ntc pa e a l e o ronu oa . SCS f t r a l ge t tX c ls f l e t pe f r unde t c r c s a is co i ng ur he le s ha oa ' aiur o r o m r he ont a t nd t ntnui ( s a e a pr s ofpero ma e' ld SCS t a e t a nd t pur ha e or r i s ur nc nd omies as f r nc ' e o gr e o me he c s de s n Fe ua y 201 a t e e Xc ls pe f ma br r 2 nd o xt nd oa ' ror nce de dlne a oxi t l one ye r untl a i s ppr ma ey a, i M a c 201 I Coun 1 1 tted i es , SCS a l gest tis own ç conom i s v vala t t rh 3. n t 1 , il s Dur s ' ' le ha t s e c ur i nd ha ofisa fla e de nde hea l upon Xc lswilng st a ce t a o sofc t ti t fiit s pe d viy oa ' li nes o c pt he m unt oal ha t c r c e f undert pur has or r and t Am e d POs't tXco kne t s a t t onta t d or he c e de s he nde , ha ' al w hi , nd ha X c lf t r kne t t is br c w e e c i dur s t SCS.SC S a l ges t ti a e d t oa urhe w ha t ea hes r ausng e s o le ha t gr e o t e e i n oftm e f pe f m a e undert pur has or r and a ee t t A m e he xt ns o i or r or nc he c e de s gr d o he nded POs onl a ar ul oft sdur s ECFNo.1a !!5 5 y s es t hi es. t 2- 7. Co 1 oft Com pl i a l s a f a c ai .l t t c a m ,SCS a l ge t t d i unt 1 he a nt lege r ud l m n ha l i le s ha , ur ng t neg i tons be w e n SCS a Xeoa r r ng t pos i e s l ofc , a heri r d as he ota i t e nd l ega di he sbl a e oal Thr s nquie t how m any t of m e a l gi ala s t c ng c l SCS had a ia e f s l a t t o ons t lur c nd of oki oa va l bl or a e nd ha Tlr s rr pr en e ç coul s l al of SCS' av lbl m ealur c la s tc ng c .' ta he e es t d i he d el 1 S aia e t l gi a nd of oki oal' 2 I is Ans r and Count cl m f damages, Xcoalcont n t we er ai or ends t s hat ome of t coaldelver di not he i ed d me tt qu lt s ct to a s tf rh i te p r h s o d r a tus ha t b rj ce Xc l e he aiy pe i ins s e o t n h u c a e r e s nd h ka d o e ee td. oa f t alegest tSCS di nottm el delveratl sts oft coalor ed. urher l ha d i y i ea ome he der ECF No 1 Co .a ! 1 - 1 S as alg st a Th a h rma e t e a dto a f rh r . , mpl t ! 0 1 . 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( h Ci.1 4 5 4t r 999)(dopi rquie ntt tt tcr t e ' rfr nc d i a tng e rme ha he kicumsanc s' ee e e n Rul 9( t taerquie t bepld wihpa tc aiya eûhetme,pl e,a co e soft e b) ha r e r d o e t riulrt r ç i t ac nd ntnt he f s r pr e ai , wel a t i ntt oft pe s n m a ng t m ir pr e a i a wha ale e es nt tons as l s he de iy he r o ki he se es nt ton nd t he obti d t e '.The Compli hee ientfe Thr her a t pe s maki t ane herby' ) ant r d iis as s he ron ng he mirpr s ttonsa f t rs ii whatheobt ne (n be fofXc )by ma ngt m. se eenai nd urhe pectes ai d o hal oal ki he A s t t r m a ni r r m e s t Co pl i c t i a ge r l tm e f a e i whi h t o he e i ng equie nt , he m a nt on a ns ne a i - r m n c he f s r pr s nt to we e m a bu nota s cik d e,a i udesno r f r nc t t t a e' ale e e e a i ns r de, t pe t at nd ncl e e e e o he i c ' pl oft rpr snttons I maybet tt fcspl a es fce t c y wih Rul 9( ,f he e ee ai . t ha he a t ed r ufiint o ompl t e b) or pur e ofs r vi a moton t dimis Cf Hars n,1 F. a 784 (( c r s d pos s u vi ng i o s s. . rio 76 3d t ( ou t houl A hestt t dimisac antunde Rul 9( i t c ti stsid ( )t tt dee ntha iae o s s ompli r e b) f he our s aife 1 ha he fnda s be n m a a a e oft pa tc a cic s a e f whi h s w ilhave t pr pa e a def e a e de w r he r i ul r r um t nc s or c he l o e r ens t 3 See ECF No. 2la Ex bt A- (on anig tr nns a d Con to o Pu c a e, ic r ortd b t hiis G c t i n t e n diins f r h s ' n o p ae y ' r frnc it e c Purha e Or r) Baed on t s i s e lk y t brac ofc nta tcai a d ee e e n o a h c s des . s hi, t e ms iel he e h o rc l m n count cl m wilbe gover by N e Yor l Ast e ar cl m sar notchalenged i t pendi er ai l ned w k aw. hos e ai e l n he ng moton,t Cour ne notm ake t tde e m i i now . i he t ed ha t r naton tiland( t tpli ifha s tnta pr dic r e de oft efcs';Sc t GM AC ra, 2) ha antf s ubsa il e s ovey vi nce hos a t.) otv. 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De e nt co e howe r t ta e f nda s nt nd, ve , ha m ndme wo d be f ie be us e n i t fa nt ul utl ca e ve f he r ud cl i had be n pl d w ih m or pa tc art t a l ge m ir pr e a i do no g ve r s t a am e e t e r i ul iy, he le d s e es nt tons t i ie o f a c a m unde V i gi a l w . r ud l i r r ni a They r l on Vigi a ca est tditngui h be w e l ulil d ey r ni s ha s i s t en i unf fle pr i es ors a e ent a t f ur e nt s'whi h t c l do not c tt t m a e i lf c s t t om s t t m s s o ut e ve s' c ypi aly ons iu e t r a a t ha wils ppor afaud c am ,a t e e o pr e si f c s' whi h ca be a tonabl . l u t r l i nd d s nt r e xitng a t , pr ' c n ci e.ECF No. 20a 6- (ii c es.The postt tt alege yfa e sae nt heefl i t fr r t 7 ctng as ) y i ha he l dl rudulnt ttme s r al n he ome cat y. egor The Cour diagr es wih De e nt ' c r c e i ton of t a lgedl fa e t s e t f nda s ha a t rzai he le y r udulnt s a e e s Cont a y t D e e nt 'a s ri ,nota loft s a e e s a e s a e e sr a di t t m nt . r r o f nda s s e tons l he t t m nt r t t m nt eg r ng a i e of f ur pe f m a e,or m er C r de t l 'or S f r ' I t ad,a l s one of t n nt nt ut e r or nc e t a a k' s e y.' ns e t puf t ea t he alge mir prs nttons M r Thr he ' sae n t thetha j trt ne fom Asaa le d se e e ai - . as rs ttme t ha t d us eur d r i nd ha c r t f de i r a t r o e he c d pa SCS f is coa pr d ontac s or lve y nd he ef r oul y or t l oduc t s a e prce t he t t d i s whi h be n e pa tof t pur ha e or r ' i a sa e e of a pr s t m a e i l f c .A s t c cm r he c s de s' s t t m nt e en t ra a t he Fourh Cic tha e a ne V i g ni 1 w Editnguihe be w ee a s a em e t t i f l e w he t r ui s xpl i d, r i a a i s i s s t n t t nt ha s a s n 6 m a a a pr s t tbe om e f s onl whe t pr m iorlt rf ist ke p hi wor The de nd omie ha c s ale y n he o s ae a l o e s d. f r e i f a t l te i br a h of co r c .' Ciy of R i hm ond v.M a s n M gm t Gm . o m r s r ud, he a t r s e c nt a t'' t c di o . , I . 91 F. 438,447 ( h Ci.1 )( ai omitd) W hiei ma ha i e SCS t nc, 8 2d 4t r 990 quotton te . l t y ve nduc d o e e i o t c r c s w ih Def nda s a w hie i m a have l d t m t bele t t nt r nt he ont a t t e nt , nd l t y e he o i ve ha Def nt ha t ca biiyt meesispr s unde t c r t t sa e e by Thr he enda s d he pa lt o t t omies r he ontac, he tt m nt as r t theç a c rcsf dei r 'i asae ntt t( alege wa û as whenmad ' Se ha t d onta t or lvey' s ttme ha as l d) s ç le h f e.4 e ' tt l i notonet tonl be a flewhe t pr s fie t kee hi wor l fle,i ts t s . ha y c me as n he omior ald o p s d. f as t coul s ppor a c a m f f a ul nt i e en . A c or ngl t Cour de e nes t t d u t l i or r ud e nduc m t c di y, he t t nni ha a ndm e woul no bef ie,a t tPli ifwilbepe te t a e isCom pli tast me nt d t utl nd ha antf l nnit d o m nd t an o isfa c am . t r ud l i I s t Pli ifha al ged a sae e t tc d s n hor, a ntf s le t tm nt ha oul uppor a c am f r fa at h t l i o r ud, lhoug Pl i ifwilbe gr nt d l a t a e i o de t ad addii ldet ls tce t m e tt antf l a e e ve o m nd n r r o d tona ai ufi int o e he de ndsofRul 9( ,asstf t i Ha s n,s a.TheCour t dimis CountI- t ma e b) e orh n ni o upr t hus s ses l he fa d cam wi u prj d c t Plitf a ii t fl a n n d Co lit wihn ru li t t eu ie o an ifs b ly o i n me de ho t e mpan t i f t n da a trt e r oft s Or r ouree ys fe he nt y hi de . B. M oton t D i m i s ast C ountI l i o s s o I I Count 11 Pl i if as e t a ca m of d es ,aleg ng t t De e n 1, antf s rs li ur s l i ha f ndant i pr pe l s m o ry e t d dur s i or r t g t SCS t a r e t a end t Pur s O r r . l t r w rten xere e s n de o e o ge o m he cha e de s n hei i t moton,De e nt co e i f nda s nt nded t tt Compl n f ld t a lge f c s s fcintt s ppo ta ha he ait aie o le a t ufi e o u r d rs cam a tu ta i i s b e t od s sa. tby h we e ,h t c s su o whc u e s li nd h s h t t s u j c t imislNo a l, o v r t e wo a e p n ih De e d n srl weeb t d cd d a tes mmayj d me tsa e n to amoin t d s s. fn a t ey r o h e i e t h u r u g n tg , o n t o imis o 4 The Cour alo concl s contar t Def t s ude , r y o endant ar ent t t Pl ntf has adequat y s' gum s, ha ai if el alg dta temirpr s n ainswe efle. No.1 Comp . t!48. le e h t h se e e tto r as ECF , la S eKigv Do n e l c, 4 F. p 2 7 6 7 ( . Va 2 0 )( imisn d rs cam e n . n k mws n .8 Su p. d 3 , 38 W D. . 0 0 d s s ig u e s li purua t Rul 56) Ce e h Gp .l v.Ger cwa Co.LLC,32F. x673,a * ( h s nt o e ; ntc .nc. tonis nc . App' t 2 4t Ci. 0 2 ( n bih d .I Ce tc tec u t fime t eg a to s mmayj d me ta ans r 2 0 ) u pu ls e ) n ne h,h o r a fr d h rn f u r u g n g i t a dur s c ai be a e a s m pl t hr a ' t dico i pe f m a e di not co tt e ç he e s l m c us i e t e t' o s ntnue r or nc d t nsiut t t coe cvecic sanc nec s ar f a c am ofe onomi dur s. 32 F.App' 673,a * The r i r um t es e s y or l i c c es ' ' x t 2. c ur frh rn td ta t fo d r s t e s u d rVign a lw,to o l mu ta tra b o t u te o e h t ç jr u e s o xit n e r ii a n t ny s h e t e l i pr r buti m us l ve t agg i ve pa t wihou an r as m ope , t t ea he r e d ry t t y e onabl ale natv t t as e e t r i e han o s nt t t ec nr c.' I . q o igKi , 4 F S p 2 a 7 9 (mp ssi Ce tc ) l t i c s , o h o ta t à d ( u tn ng 8 . u p. d t 3 ) e ha i n n e h . n hs a e ' w he he or notSCS ha a t ea ona e a t r tve 'ot r t n as e i t t a e e s t t r d ny t s bl le na i ' he ha s ntng o he m ndm nt o r t pt c s or r c nnotpr ry be de e ne a t di m i s l s a ,butt tas c oft he t ha e de s a r ope l t nui d t he s s a t ge ha pe t he cam h sb e p e S e Co l a ! 5 - 6 (le ig ta Plitf' G c n mi s r ia a d li a e n ld. e mp . t ! 4 5 algn h t an ifs t o o c u vv l n e t t ofis a flaes'E pende he viy upon' or En l r pa tupon' Xcoa ' w ilng s t ha t fii t ' d de d a l ' t a ge r i ' ls li ne s o a e t a cc pt he mount ofcoa t ti c rce f 'a ist ompla ewihisoblgains' The s l ha t onta td or' nd t l c inc t t i to . ). Cour hasca e uly r vi d t Co pl nta t ar um e soft pa te a deer i st t t r f l e ewe he m ai nd he g nt he ri s nd t m ne ha t du es c am i a quatl pld a s vvesDe e nt moton t dim is he r s l i s de e y e nd ur i f nda s' i o s s . De e nt r s d a a tona a gume f t fr ttm e a t he rng,a g ng t t f nda s aie n ddii l r nt or he is i t he a i r ui ha t ca l t onl r le t t c n be af o de a a r s t of a dur s cl i i t vo di of a ypi ly, he y e i f ha a f r d s e ul es a m s he i ng c r t( r,pr s bl t twoul bet voii oft a nd nt t t purhas or r, ontac hee e uma y ha d he dng he me me s o he c e des whih we e t co rcs alege t ha be n e ue a a rs tofdur s.Defnda t c r he nta t l d o ve e xec td s e ul es) e ns c r c l not howeve , t t Cou 1 1 doe no r que t r i i t f or e ty e, r ha nt l s t e s elef n he onn of voi ng t di he Am e e s t t Pur s O r r , bu i t ad s e co pe a or da age . Be a e t s ndm nt o he cha e de s t nse e ks m ns t y m s c us hi is wa not r ie i De e an s'wrte m o i ho ve ,a Pl ntf has no ha t s ue s a s d n f nd t it n ton, we r nd ai if t d he opport t t r pond t i i m itng,t Courtdeclnes t grantr i on t s gr uniy o es o tn i he i o elef hi ound.Pl ntf ai if 8 m a wih t co i r Def nda s a g e s whe dr fi is Ame y s o nsde e nt ' r um nt n a tng t nded Compl nt a t ai , nd he Cour wil e e t i a s e nt m oton t dim i s on t s g ound, s d t A m e d t l nt r a n ubs que i o s s hi r houl he nde Com pl i s k r le on a dur s c a m o he t n a voi ng oft a endm e s a nt ee e i f e s l i t r ha di he m nt . C . M ot on t D i i s or St ke R eques f A t orneys'Fees i o sm s ri t or t Lasl De e ty, f ndan s move t tt Pl n ifsr s f at ne 'f esbe src n fom t ha he aitf ' eque t or tor ys e tike r t Com pli t a gui t tPli ifha noti entfe a e pton t t Ame ia Rul t t he a n , r ng ha antf s d ii d ny xce i o he rc n e ha w oul e il i t r c d ntte t o e over is a t ne f e .ECF N o.20 a 11 I t ad,t û m erc Rul ,' t tor ys' e s t . ns e he ' A i an e' f l olowed i V igi a, o dest tE tor y' f e a e no r cove a e by a pr ii ltga i n r ni pr vi ha s t ne s e s r t e a r bl eva lng ii nt n t a e e ofa s c fc c r c ua o s a ut r pr s on t t c r r ' Rvde v.Pe r a 41 he bs nc pe ii ont a t l r t t o y ovi i o he onta y. ' r te , 6 S. 2d 686,688 ( 1 ( tton omit .Si fc nty,Pli ifha notrs ndedt t s E. Va. 992) ciai ted) gniia l antf s epo o hi por i oft m oton t di m i sand no pa t r i e i a or la gum e .M or ove ,t Cour has ton he i o s s ry as d t t a r nt e r he t r vi wed t a ho ii s c t by D e e nt a ag e t tt r ques f a t ne 'f e i t s e e he ut r te ied f nda s nd r e ha he e t or tor ys e s n hi a ton i i pr r Se e. , C. Rit r Lum be Co. I v. Cons i ton Coal Co. N o. c i s m ope . e. g. L. te r . nc. olda i , 1: 1 1 CV0001 2011W L 49631 ( . Va Oc.1 2011 ( s si r s f at ne ' 9, 95 W D. . t 9, ) dimisng equet or tor ys fesunde Rul 1 b)6);J Ta I v.W hia r No.2: v1 2007 W L 21 e r e 2( ( ) TH x. nc. tke , 07c 70, 26300( D. E. Va J y 1 ,2 0 )(ti ig r q et fr atme 'fe u d rRue 1 ( .Ac odigy te . ul 6 0 7 srkn e u ss o to ys e s n e l 2 9) c r n l, h Cour G RAN TS t Def nda s m oto i of r a i s e t dim i s lofPl i if sr t he e nt ' i n ns a s t e ks he s s a a ntf ' eque tf r s o at r to neys f s ' ee . 9 l V. C O NC LU SI N O Fort r s s 1f t a he ea ons e or h bove, he Cour GR AN TS I PA RT a D EN I I PART t t t N nd ES N he M oin t Dimis l i GM NTED wi u p eu ie a t Co n 1 a d GRANTED a t to o s s . t s t t rj dc s o u t 1 n ho so Pl n ifs r que t f a t ne ' f es a i DENI a t Count 11 Pl ntf s l ha aitf' e s or tor ys e , nd s ED s o 1. ai if ha l ve f t e da f om t e r oft s Or rt fl an Am e ed Com pl nt our e n ys r he nt y hi de o ie nd ai . An a pr pr a e or r s li s t sda p o i t de hal s ue hi y. ENTER:Thi f& s z da ofOc o r 201 y t be , 2. u n.J e C.Tur s k Se o Unied St t Diti tJ ni r t aes src udge 10

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