Arandell Corp. v. Xcel Energy, Inc.

619 F. Supp. 2d 1062, 2008 U.S. Dist. LEXIS 18873
CourtDistrict Court, D. Nevada
DecidedFebruary 19, 2008
DocketMDL 1566; Nos. 2:03-CV-01431-PMP-PAL, 2:07-CV-01019-PMP-PAL
StatusPublished
Cited by1 cases

This text of 619 F. Supp. 2d 1062 (Arandell Corp. v. Xcel Energy, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arandell Corp. v. Xcel Energy, Inc., 619 F. Supp. 2d 1062, 2008 U.S. Dist. LEXIS 18873 (D. Nev. 2008).

Opinion

[1064]*1064 ORDER

PHILIP M. PRO, District Judge.

Presently before this Court are Defendants’ Motion to Dismiss on Grounds of Lack of Standing and the Filed Rate Doctrine (Doc. # 653;1 Doc. #114 in 2:07-CV-01019-PMP-PAL) with supporting memorandum of law (Doc. # 654), and Defendants’ Motion for Summary Judgment (Doc. #655; Doc. #116 in 2:07-CV-01019-PMP-PAL), filed on September 10, 2007. Plaintiffs filed an Opposition (Doc. # 143 in 2:07-CV-01019-PMP-PAL) with supporting declaration (Doc. # 144 in 2:07-CV-01019-PMP-PAL) on October 26, 2007. Plaintiffs also filed two declarations (Doc. # 744 & Doc. # 745) on November 9, 2007. Defendants filed a Reply (Doc. #759; Doc. #162 in 2:07-CV-01019-PMP-PAL) on November 27, 2007.

Also before the Court is Plaintiffs’ Motion for Leave to Amend Pleadings (Doc. # 138 in 2:07-CV-01019-PMP-PAL) with supporting memorandum of law (Doc. # 139 in 2:07-CV-01019-PMP-PAL), filed on October 26, 2007. Defendants filed an Opposition (Doc. # 757; Doc. # 165 in 2:07-CV-01019-PMP-PAL) on November 27, 2007. Plaintiffs filed a Reply (Doc. # 788) with supporting declarations and exhibits (Doc. #789, Doc. #791) on December 11, 2007. Defendants filed a Response to Plaintiffs’ Reply Brief (Doc. #171 in 2:07-CV-01019-PMP-PAL) on December 26, 2007.

Also before the Court is Plaintiffs’ Motion Pursuant to Federal Rule of Civil Procedure 56(f) (Doc. # 140 in 2:07-CV-01019-PMP-PAL) with supporting memorandum of law and affidavit (Doc. # 141, Doc. # 142), filed on October 26, 2007. Defendants filed an Opposition (Doc. #758; Doc. #166 in 2:07-CV-01019-PMP-PAL) on December November 27, 2007. Plaintiffs filed a Reply (Doc. # 792) on December 11, 2007.

I. BACKGROUND

This case is one of many in consolidated Multidistrict Litigation arising out of the energy crisis of 2000-2001. Plaintiffs originally filed this action in the Circuit Court, Dane County, Wisconsin. (Notice of Removal [Doc. # 2], Compl.) Defendants removed the case to the United States District Court for the District of Wisconsin. [1065]*1065(Id.) The Judicial Panel on Multidistrict Litigation entered a Transfer Order pursuant to 28 U.S.C. § 1407 centralizing the foregoing action in this Court for coordinated or consolidated pretrial proceedings.

Plaintiffs Arandell Corporation, Merrick’s, Inc., Safety-Kleen Systems, Inc., and Sargento Foods, Inc. are Wisconsin corporations. (Am. Compl. [Doc. # 542] at 5-6.) According to the Amended Complaint, Defendants are natural gas companies that buy, sell, transport, and store natural gas, including their own and their affiliates’ production, in the United States and in the State of Wisconsin. (Id. at 6-55.) In this litigation, Plaintiffs allege Defendants conspired to engage in anti-competitive activities with the intent to manipulate and artificially increase the price of natural gas for consumers. (Id.) Specifically, Plaintiffs allege Defendants, directly and through their affiliates, conspired to manipulate the natural gas market by knowingly delivering false reports concerning trade information to trade indices and engaging in wash trades, which conduct violated Wisconsin Statutes ch. 133.(Id.) The Amended Complaint asserts two causes of action. Count one arises under Wisconsin Statutes § 133.14, which voids contracts to which an antitrust conspirator is a party and allows recovery of payments made pursuant to such a contract. (Id.) Count two seeks trebled actual damages under Wisconsin Statutes § 133.18 for Defendants’ alleged antitrust violations. (Id.)

Defendants Duke Energy Carolinas, LLC; Duke Energy Trading and Marketing, LLC; Reliant Energy, Inc.; CMS Energy Corporation; CMS Energy Resources Management Co. (formerly known as CMS Marketing Services & Trading Co.); Cantera Gas Company; ONEOK Inc.; Centerpoint Energy Inc.; Dynegy Inc.; Dynegy GP Inc.; and DMT Holdings, LP move to dismiss count one of Plaintiffs’ Amended Complaint. These Defendants argue Plaintiffs lack standing to assert a claim against them under Wisconsin Statute § 133.14 because the Amended Complaint does not allege any named Plaintiff purchased natural gas directly from any of these moving Defendants.

Defendants Coral Energy Resources, LP; Xcel Energy, Inc.; ePrime, Inc.; El Paso Marketing, LP (formerly known as El Paso Merchant Energy, LP); El Paso Corporation; ONEOK Energy Services Company, LP (formerly known as ONEOK Energy Marketing & Trading Company, LP); The Williams Companies; Williams Merchant Services Company, Inc.; and Williams Power Company, Inc. (formerly known as Williams Energy Marketing & trading Company) move for summary judgment on count one of the Amended Complaint. These Defendants argue Plaintiffs lack standing to assert a claim against them under Wisconsin Statute § 133.14 because no named Plaintiff purchased natural gas directly from any of these moving Defendants.2 The Defendants moving for summary judgment provide affidavits to the effect that the companies have searched their records and find no sales of natural gas to any named Plaintiff in this action.3

[1066]*1066Plaintiffs respond that the Amended Complaint identifies at least one named Plaintiff, Safety-Kleen Systems, Inc., which has purchased natural gas directly from at least one named Defendant, Northern States Power Company. Additionally, Plaintiffs request leave to amend to add another Plaintiff, Ladish Co., Inc., which purchased natural gas directly from at least one current Defendant, Reliant Energy Services, Inc., and a proposed new named Defendant, CenterPoint Energy Services, Inc. Plaintiffs further argue that § 133.14 does not require a direct privity of contract relationship between a plaintiff and a defendant and indirect purchasers have standing to sue under § 133.14. Plaintiffs also suggest that because they have named at least one Plaintiff who directly purchased natural gas from one Defendant, all Defendants are liable for their alleged co-conspirator’s conduct. Alternatively, Plaintiffs request the Court delay ruling on Defendants’ motions until Plaintiffs have had an opportunity to conduct discovery regarding from which companies Plaintiffs and unnamed class members have purchased natural gas in Wisconsin.

II. MOTION TO DISMISS

Defendants Duke Energy Carolinas, LLC; Duke Energy Trading and Marketing, LLC; Reliant Energy, Inc.; CMS Energy Corporation; CMS Energy Resources Management Co. (formerly known as CMS Marketing Services & Trading Co.); Cantera Gas Company; ONEOK Inc.; Centerpoint Energy Inc.; Dynegy Inc.; Dynegy GP Inc.; and DMT Holdings, LP contend Plaintiffs’ Amended Complaint does not allege Plaintiffs purchased natural gas directly from Defendants, and therefore dismissal of count one is appropriate because only direct purchasers may recover under § 133.14. Plaintiffs respond that the Amended Complaint sufficiently alleges Plaintiffs purchased natural gas from Defendants, and, in any event, Defendants’ construction of § 133.14 is incorrect.

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Related

In Re West. States Wholesale Natural Gas Antitrust
619 F. Supp. 2d 1062 (D. Nevada, 2008)

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Bluebook (online)
619 F. Supp. 2d 1062, 2008 U.S. Dist. LEXIS 18873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arandell-corp-v-xcel-energy-inc-nvd-2008.