Experience
Resource Sales, Inc., Allied Resources, Inc., Cochise Coal Co., Inc. and SMCC, Inc. v. Louisville Gas & Electric Co. and Kentucky Utilities Co.; Resource Sales, Inc., Allied Resources, Inc., Cochise Coal Co., Inc. and SMCC, Inc. v. Western Kentucky Energy
These companion cases concern disputes over two coal supply agreements. The coal producer declared force majeure and shut down one of its coal mines, thereby reducing (and ultimately stopping) all coal deliveries to our utility clients. Thereafter, our clients had to purchase coal at significantly higher prices than under the agreements, leading to approximately $50 million in damages our utility clients now seek to recoup. The cases seek a declaratory judgment as well as breach of contract claims.
Sale of Family-Owned Coal Company
When Pine Branch Coal Sales was presented with the opportunity to sell their operating assets, they turned to Dinsmore for counsel. A family-operated coal company, Pine Branch was approached by Blackhawk Mining, LLC about the potential transaction, which would allow Blackhawk to more than double its production. We worked with Pine Branch to facilitate the deal, including conducting due diligence analysis and preparing and drafting the appropriate documentation. We also assisted the client with the complex financial aspects of the deal, which included a component of seller financing and a multi party intercreditor arrangement with a consortium of lenders headed by Deutsche Bank. We then counseled the client through the closing and execution of the sale, which was completed efficiently and to the satisfaction of the client.
Decertification Defense
When a miner was facing decertification proceedings from the West Virginia Office of Miners’ Health Safety and Training, he turned to Dinsmore. Our client was accused of not properly locking and tagging a piece of equipment, which violates state law. As a result, the state of West Virginia sought permanent decertification of the miner. We conducted on-site research at the mine, interviewing witnesses and examining the company’s safety policies, procedures and records. We determined the alleged violation did not rise to the level of permanent decertification and entered into negotiations with the state of West Virginia. We reached a settlement favorable to our client, allowing him to avoid permanent decertification and return to work.
U.S. v. Coal Company
We represented the Defendant coal company in a federal suit seeking $20 million in penalties for alleged criminal violations of health and safety standards. After a four week trial, the District Court imposed $300,000 in fines. The U.S. appealed and the Sixth Circuit affirmed.