Frank Krammes Timber Harvesting, Inc. v. Letourneau Enterprises, LLC

CourtDistrict Court, M.D. Pennsylvania
DecidedApril 27, 2021
Docket3:18-cv-01914-RDM
StatusUnknown

This text of Frank Krammes Timber Harvesting, Inc. v. Letourneau Enterprises, LLC (Frank Krammes Timber Harvesting, Inc. v. Letourneau Enterprises, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank Krammes Timber Harvesting, Inc. v. Letourneau Enterprises, LLC, (M.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA FRANK KRAMMES TIMBER HARVESTING, INC., ot Plaintiff, LO " 2 (JUDGE MARIAN PILED LETOURNEAU ENTERPRISES, LLC, | SCRANTON APR 37 2021 Defendant. MEMORANDUM OPINION SEP □□□□ I, INTRODUCTION On September 11, 2018, Plaintiff Frank Krammes Timber Harvesting, inc. ("“Krammes’” or “Plaintiff’) filed a complaint (the “Original Complaint”) in the Court of Common Pleas of Schuylkill County. (Doc. 1-1 at 13). This complaint was later removed to this Court on October 1, 2018, by Defendant Letourneau Enterprises, LLC (“Letourneau” or “Defendant”) on the basis of diversity jurisdiction. The Original Complaint contained three separate claims, including claims for declaratory relief as to the parties’ relationship embodied by contract (Count |), promissory estoppel (Count II), and unjust enrichment (Count Ill). (Doc. 1-1). Thereafter, Defendant filed its Motion to Dismiss the Original Complaint for failure to state a claim upon which relief could be granted, which this Court granted with prejudice as to Count | and without prejudice with leave to amend the Original Complaint as to Counts II and III.

Plaintiff amended the Original Complaint and filed a revised version (the “Amended Complaint’) on October 16, 2019. (Doc. 24). On October 30, 2019, Defendant filed its Motion to Dismiss Plaintiffs Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) for the remaining claims and also filed an alternative Motion for Summary Judgment pursuant to Federal Rule of Civil Procedure 56(a) as to Plaintiff's unjust enrichment claim. (Doc. 25). For the reasons set forth below, the Court will deny Defendant’s Motion to Dismiss and deny Defendant’s Motion for Summary Judgment. ll. FACTUAL ALLEGATIONS =

Defendant Letourneau is a North Carolina-based contracting company that specializes in right-of-way clearing for natural gas and oil pipelines, powerlines, and heavy civil construction. (Doc. 24 at Jf 2, 4). In 2017, Defendant was involved in a Federal Energy Regulatory Commission (“FERC”) certified pipeline construction project, the Atlantic Sunrise Project (the “Pipeline Project”), that planned to install a natural gas pipeline extension that would stretch from northeastern Pennsylvania, including portions of Schuylkill County, to existing pipelines reaching as far south as Alabama. (Doc. 24 at Jf 5-9). For its part, Letourneau was tasked with clearing the land surface through which the pipeline would proceed and remove — and dispose of — timber and other wood materials from such designated land. (Id). Plaintiff Krammes alleges that in July and August 2017, Letourneau sent a representative to Schuylkill County to meet and develop relationships with individuals

companies engaged in timbering and harvesting operations that could assist Letourneau in the “disposal of the cuttings, grindings, chips, logs, timber and other woody materials Letourneau was obliged to remove’ in connection with the Pipeline Project. (Doc. 24 at 7 9). Krammes was one such company. (/d. at { 10). Krammes further alleges that this representative spoke with Krammes’ president during this period and made an “oral promise’ to begin delivery of “as much as 50 to 100 trailer loads per day” of wood materials to Krammes for disposal once the Pipeline Project commenced and Krammes had obtained proper approval from FERC. (Doc. 24 at J 12). Krammes contends that this promise was then “put down in two writings,” referred to in the Amended Complaint as the “September 11, 2017 letter’ and the “Timber Services Agreement.” (/d. at J] 19, 25). These writings, however, make no mention of the delivery of “50 to 100 trailer loads per day” of wood product, but instead state that Krammes “will accept all woody materials generated from the Atlantic Sunrise Project” and that there would be “no minimum/maximum number of loads” to be delivered by Defendant — thus constituting, at most, unilateral contracts.’ (Doc. 1-1 at 4-5).

' Plaintiffs initial claim for declaratory relief as to the parties’ relationship embodied in a contract was dismissed with prejudice as: (|) neither the Timber Services Agreement nor the September 11, 2017 letter required Defendant to deliver to Plaintiff any wood materials generated from its project or to maintain an exclusive relationship with Plaintiff, and (Il) the written agreements between the parties involved a promise to perform by Plaintiff if Defendant were to perform, thus constituting a unilateral contract that could not be enforceable or breached until performance by Defendant — which never occurred — was completed. (Doc. 22).

For Krammes to even accept any “woody materials,” it was first required to obtain FERC approval for its disposal sites. This approval process necessitated that Letourneau submit certain information concerning Krammes’ disposal sites to FERC, which Krammes provided to Letourneau. (Doc. 24 at 23). Krammes personnel were also required to “attend[] safety, environmental and other training” to meet the project requirements, as described to Krammes by Letourneau. (/d. at ] 23). In addition, Krammes took other steps “[i]n reliance on [Letourneau’s] promises” that Krammes would eventually receive deliveries of wood material from the Pipeline Project, including renegotiating terms of delivery and payment for its existing customers, turning down requests from third parties for timbering and processing of wood products, and preparing and modifying its primary disposal site to handle the anticipated deliveries from Letourneau. (/d. at J 24). All the while, Letourneau had also entered into discussions with other timbering companies in the region to provide the same services. (Doc. 24 at ff] 9, 35). Though Krammes eventual received FERC approval to dispose of wood materials stemming from the Pipeline Project, Defendant eventually delivered those materials to sites operated by third parties. (/d. at |] 35). No materials were ever delivered to Krammes'’ site. (d.). As a result of Defendant's failure to deliver any wood materials, Krammes filed the present lawsuit that included claims for breach of contract, promissory estoppel, and unjust enrichment. (Doc. 1-1 at 13). Following dismissal of Krammes’ claim for breach of contract and amendments to the Original Complaint Krammes now argues: (1) that the oral

promises made by Defendant'’s representative induced Plaintiff to take costly steps to ready itself for delivery of wood materials that never came; and (2) that Defendant benefited from Plaintiffs written commitments to accept wood materials from the Pipeline Project as Defendant was then able to commence work clearing the right-of-way areas and use its relationship with Plaintiff to negotiate more favorable price terms with third-party users or purchasers to which it then delivered the resulting wood materials. (Doc. 24 at {J 50-68). Letourneau now seeks dismissal of the remaining two claims, as well as summary judgment as to the Krammes'’ claim for unjust enrichment. (Doc. 25). II. STANDARD OF REVIEW A complaint must be dismissed under Federal Rule of Civil Procedure 12(b)(6) if it does not allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 505 U.S. 544, 570 (2007). The plaintiff must assert “factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. iqbal, 556 U.S. 662, 678 (2009).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Lujan v. National Wildlife Federation
497 U.S. 871 (Supreme Court, 1990)
Scott v. Harris
550 U.S. 372 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
C & K Petroleum Products, Inc. v. Equibank
839 F.2d 188 (Third Circuit, 1988)
Carlson, David v. Arnot-Ogden Memorial Hospital
918 F.2d 411 (Third Circuit, 1990)
John Joseph Edwards v. A. Wesley Wyatt
335 F.3d 261 (Third Circuit, 2003)
Ethypharm S.A. France v. Abbott Laboratories
707 F.3d 223 (Third Circuit, 2013)
Connelly v. Steel Valley School District
706 F.3d 209 (Third Circuit, 2013)
Reeves v. Sanderson Plumbing Products, Inc.
530 U.S. 133 (Supreme Court, 2000)
Sovereign Bank v. BJ's Wholesale Club, Inc.
533 F.3d 162 (Third Circuit, 2008)
American Eagle Outfitters v. Lyle & Scott Ltd.
584 F.3d 575 (Third Circuit, 2009)
Burton Imaging Group v. Toys" R" US, Inc.
502 F. Supp. 2d 434 (E.D. Pennsylvania, 2007)
Josephs v. Pizza Hut of America, Inc.
733 F. Supp. 222 (W.D. Pennsylvania, 1989)
Crouse v. Cyclops Industries
745 A.2d 606 (Supreme Court of Pennsylvania, 2000)
Derrick Johnson v. Dunkin' Donuts Franchising LLC
610 F. App'x 208 (Third Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Frank Krammes Timber Harvesting, Inc. v. Letourneau Enterprises, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-krammes-timber-harvesting-inc-v-letourneau-enterprises-llc-pamd-2021.