Javelin Global Commodities (UK) Ltd. v. Booth

CourtDistrict Court, S.D. New York
DecidedNovember 6, 2023
Docket1:20-cv-07550
StatusUnknown

This text of Javelin Global Commodities (UK) Ltd. v. Booth (Javelin Global Commodities (UK) Ltd. v. Booth) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Javelin Global Commodities (UK) Ltd. v. Booth, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT i SOUTHERN DISTRICT OF NEW YORK DOCUMENT ee [suscriomecacty FILED □ JAVELIN GLOBAL COMMODITIES (UK) OC He LTD., DATE FILED: □□ □ 6/2043 | iain ===

-against- 20 cry 7550 (CM)

JAMES BOOTH, Defendant. DECISION AND ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

McMahon, J.:

After completing a modicum of discovery, Plaintiff has renewed its motion for summary judgment on the guaranty signed by Defendant James Booth in connection with a commercial transaction in coal. Defendant raises no defense to his liability on this absolute and unconditional guaranty, but quibbles with the amount he owes. Plaintiff has accepted Defendant’s criticism of its calculations (aside from its calculation of interest owed, which is a technical matter) and has reduced the amount of principal owed to the number that Defendant does not dispute. There is, therefore, no genuine issue of material fact to try; Plaintiff's motion for summary judgment is granted.

FACTUAL BACKGROUND The court previously denied a premature motion for summary judgment made by Plaintiff, without prejudice to renewal. (Dkt No. 50). The motion presently before the court is the renewed motion. Much of what will follow by way of background information is taken from the original decision on the motion for summary judgment. However, I have updated the citations to conform to the Statements of Material Facts filed by the parties in connection with this renewed motion. Parties and Relevant Non-Parties Plaintiff Javelin is a United Kingdom Limited Liability company organized under the laws of England and Wales with a place of business in London. (Dkt. No. 66 (“P1.’s Rule 56.1”) □ 1). Javelin’s business includes the sale and marketing of commodities, including coal. (/d., 2). Defendant Booth is an individual citizen and resident of Kentucky. (Compl. (2). Booth was a member and officer of non-party Cambrian Coal LLC (“Cambrian”), a Kentucky Limited Liability company engaged in the mining of coal. (PI.’s Rule 56.1, {[ 3). Non-parties Clintwood Elkhorn Mining LLC (“Clintwood”) and Premier Elkhorn Coal LLC (“Premier Elkhorn”) are affiliates of Cambrian. A. The Underlying Agreements and Guaranty i. The Master Coal Purchase and Sale Agreement In 2018, Javelin and Cambrian entered into a “Master Coal Purchase and Sale Agreement” dated September 7, 2018 (“Master Agreement”). (See PI.’s Rule 56.1, { 4). The Master Agreement set forth terms for transactions between Javelin and Cambrian for the shipment, purchase and sale of coal. (See Dkt. No. 63-1). Cambrian was authorized under the Master Agreement to “designate any of its Affiliates,” including specifically Clintwood and Premier Elkhorn, “as the Seller under any Confirmation.”

(id, at § 23.1). And Clintwood and Premier Elkhorn, affiliates of Cambrian, were each listed as “Approved Sellers” under the Master Agreement. (/@. at Annex 2). Per the terms of the Master Agreement, Cambrian agreed that, whenever an Approved Seller executed a Confirmation, Cambrian would be “bound by the terms of such Confirmation and hereby irrevocably grants to each Approved Seller all necessary power and authority to bound Counterparty” and that “no such designation [of Approved Sellers] by [Cambrian] shall relieve [Cambrian] of its obligations [under the Master Agreement] with respect to such Confirmation.” Ud. at § 23.1). ii. The Marketing Agreement The Master Agreement references Javelin’s and Cambrian’s entering into a separate “Marketing Agreement.” Specifically, the Master Agreement states, “The Parties are entering into this Master Agreement concurrently with the Marketing Agreement (as hereinafter defined), the □

two agreements being complimentary of, and mutually dependent on one another, each forming part of a single, unified underlying business relationship among the Parties.” (id. at 3). The Marketing Agreement contains the same general language that the agreements are complimentary, mutually dependent, and form part of a single underlying business relationship among the parties. (See Dkt. No, 48-1). iii. The Confirmation Pursuant to the Master Agreement, Javelin and Cambrian entered into a purchase and sale confirmation, reference number CLI18(TP)0004 (the “Confirmation”), dated September 7, 2018. (See Dkt. No. 63-2). Cambrian’s affiliate Clintwood was the designated Seller under this Confirmation. The Confirmation set forth the terms for a specific “Onward Sale” transaction. (/d. at 8). The Confirmation explains that Javelin had entered into a separate contract with the non-party

United States Steel Corporation (“USSC”) for the sale and purchase of coal produced by Clintwood or its affiliates. (/d. at 2). Javelin entered into the contract with USSC “for the purposes of intermediating the supply of coal.” (/d.). Clintwood, as an authorized seller for Cambrian, agreed to supply coal to Javelin “in order to fulfil” the terms of Javelin’s contract with USSC. The Confirmation referenced and incorporated the “Customer Contract” between Javelin and USSC for many of the “Principle [sic] Terms” of the product shipment and delivery. (/d. at 2- 3; see id. at 14), Specifically, the Confirmation and Customer Contract set forth that, between May 1, 2018 and March 31, 2019, Clintwood was to sell and deliver 179,458 short tons of coal ratably to Javelin, which Javelin was to sell on to USSC. (/a@. at 15). A ratable shipment schedule meant deliveries of approximately 25,000 tons per month, or approximately 150,000 tons by March 31, 2019. (See Dkt. No. 63-4, at 2). To facilitate the shipments and delivery of coal, the Confirmation bound Javelin to make a prepayment of four million U.S. dollars ($4,000,000.00) (the “Prepayment”). In accordance with . the Confirmation, Javelin was to recoup the Prepayment through credits of $270,00 each, in respect of each shipment of coal under the Confirmation, until the Prepayment was repaid in full. (Dkt. No. 66, ff 9-10). The balance of the prepayment bore daily interest at the rate of LIBOR plus 6.5% per anum (based on a 360 day year) through the date when the Prepayment was recouped in full. Upon the occurrence and during the continuance of any default, the balance of the Prepayment bore daily interest at the rate of LIBOR plus 8% per annum, again through the date when the Prepayment was fully recouped. (Dkt. No. 66, 4 11). iv. The Guaranty As a condition for Javelin’s agreeing to enter into the Master Agreement and Confirmation and make the $4 million Prepayment, Javelin required a guaranty. (See Dkt. No. 66, { 12).

Accordingly, defendant Booth entered into the Guaranty, dated September 7, 2018, in favor of and for the benefit of Javelin, with the acknowledgement that as an “indirect owner” of Cambrian, he would “derive substantial direct and indirect benefits from the [Master Agreement and Confirmation] and the Prepayment.” Specifically, he guaranteed Cambrian’s obligations as follows: Guarantor [Booth] hereby absolutely, unconditionally and irrevocably guarantees to Beneficiary [Javelin], as a primary obligor and not merely as surety, all the obligations of Obligor [Cambrian] with respect to [the Master Agreement and Confirmation] (including but not limited to the due and prompt repayment by Obligor of the Prepayment, together with any interest due thereon), in accordance with the terms of the Underlying Agreement in the event of any failure whatsoever or howsoever arising by Obligor to perform its obligations (including but not limited to the obligation to repay the Prepayment) in accordance with the terms of the Underlying Agreement (the “Obligations”), plus all costs, expenses and fees (including the reasonable fees and expenses of Beneficiary’s counsel) in any way relating to the enforcement or protection of Beneficiary’s rights hereunder up to a maximum amount of four million U.S.

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Javelin Global Commodities (UK) Ltd. v. Booth, Counsel Stack Legal Research, https://law.counselstack.com/opinion/javelin-global-commodities-uk-ltd-v-booth-nysd-2023.