Johnson v. The Narragansett Electric Company d/b/a National Grid

CourtDistrict Court, D. Rhode Island
DecidedJune 2, 2021
Docket1:19-cv-00643
StatusUnknown

This text of Johnson v. The Narragansett Electric Company d/b/a National Grid (Johnson v. The Narragansett Electric Company d/b/a National Grid) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. The Narragansett Electric Company d/b/a National Grid, (D.R.I. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODE ISLAND ) BHK REALTY, LLC; THE PALE, LLC) d/b/a BUSKERS PUB; and THE ) BODHI SPA, LLC (Class ) Representatives), ) Plaintiffs, ) ) v. C.A. No. 19-642:SJM-LDA THE NARRAGANSETT ELECTRIC ) COMPANY d/b/a NATIONAL GRID; ) NATIONAL GRID LNG, LLC; and ) ALGONQUIN GAS TRANSMISSION, |) LLC, ) Defendants. ) ee) ) GAIL JOHNSON; STUART HEBB; ) RICHARD HYDE; SANDY TARR; ) VICTORIA MELE; BEKKI ) SCHENKER; PATRICK KENNEDY; NICK HARVEY; and SHAWN ) MCKENNA (Class Representatives), ) Plaintiffs, ) C.A. No, 19-643-JJM-LDA ) THE NARRAGANSETT ELECTRIC ) COMPANY d/b/a NATIONAL GRID; __) NATIONAL GRID LNG, LLC; and ) ALGONQUIN GAS TRANSMISSION, _ ) LLC, ) Defendants. ) )

. MEMORANDUM AND ORDER JOHN J. MCCONNELL, JR., Chief United States District Judge.

Plaintiffs, individual residents and business owners on Aquidneck Island in Newport County, Rhode Island, filed suit against Defendants arising out of a gas service interruption on the Island, That interruption, caused by a cold weather event, led to Plaintiffs’ losing gas service to their homes and businesses, resulting in economic and property damage. Plaintiffs amended the Complaint several times: the Fourth Amended Complaint is the operative one. BHA ECF No, 32; Johnsen ECF No. 31.! Before the Court are eight motions, seeking to dismiss Plaintiffs’ entire Fourth Amended Complaint. BHKECF Nos, 33-36; Johnson ECF Nos. 32°35. The Court turns to the facts leading to Plaintiffs’ litigation. I BACKGROUND The named Plaintiffs in Johnson are primarily individual Newport residents. The named Plaintiffs in BHK are Newport businesses. They sued four Defendants — Narragansett Electric d/b/a/ National Grid (Narragansett), a local distribution company that controls the gas delivered via an interstate pipeline and then distributes that gas to customers; National Grid LNG, LLC (NG-LNG), affiliated with Narragansett and operates an LNG storage facility in Providence; National Grid USA Service Company (NG USA) a Massachusetts corporation affiliated with Narragansett and NG-LNG; and Algonquin Gas Transmission, LLC, who owns and operates a meter-and-regulator station in Weymouth, Massachusetts and operates an iRVERRRUS natural gas pipeline system that delivers gas throughout the Northeast, including Rhode Island.

1 The Complaints are identical save for the named Plaintiffs.

The facts alleged that triggered this lawsuit are as follows. On January 21, 2019, temperatures in Rhode Island dropped to near zero degrees Fahrenheit. Additional natural gas supply was needed to meet the sharply increased demand, so Narragansett contacted its affiliate NG-LNG to “re-gasify” liquified natural gas (“LNG”) and send it through the pipeline system to increase gas supply and support the system’s pressure levels. The NG-LNG plant suffered an interruption in power supply, however, that triggered a temporary shutdown, preventing it from supplying the additional gas. At the same time, Algonquin’s pipeline experienced an increased draw of gas, which further exceeded the maximum contracted rates of delivery into Narragansett’s gas distribution system for several hours, In response, Algonquin tried to raise the flow rate of gas from its meter-and-regulator station in Weymouth, Massachusetts, but due to an alleged “meter configuration error,” the Weymouth station’s flow rate decreased for a short time. Plaintiffs allege that these three events on January 21, 2019—the NG-LNG shut down, overtakes on Algonquin’s system, and the alleged configuration error at Algonquin’s Weymouth meter station—-led to customers on Aquidneck Island experiencing low gas pressure and the loss of gas. As a result of this temporary interruption in service in Narragansett’s distribution system, Plaintiffs allege they were harmed. Plaintiffs’ Fourth Amended Complaint alleges the following claims: Strict Liability against NG-LNG (Count 1); Negligence against Narragansett (Count 2); Negligence against NG-LNG (Count 3); Joint Enterprise against NG-LNG, NG USA,

and Narragansett (Count 4); Vicarious Liability for NG USA (Count 5); Vicarious Liability for NG-LNG based on agency (Count 6); Breach of Contract against NG- LNG (Count 7); Statutory Violation of minimum operating standards under 49 U.S.C. § 60103 (d) against NG-LNG (Count 8); Negligence against Algonquin (Count 9); and Breach of Contract against Algonquin (Count 10). Plaintiffs seek damages as well as injunctive relief. All Defendants move to dismiss all the claims. BHA ECF Nos. 33, 34, 35, 36; Johnson ECF Nos. 82, 33, 84, 35. Plaintiffs agreed to dismiss Defendant NG USA from the case, so its motion is GRANTED, and it is DISMISSED. No. 34; Johnson ECF No. 32. The Court now turns to the remaining Defendants’ Rule 12(b)(6) motions. II. STANDARD OF REVIEW Federal Rule of Civil Procedure 12(b)(6) tests the plausibility of the claims presented in a plaintiffs complaint. “To avoid dismissal, a complaint must provide ‘a short and plain statement of the claim showing that the pleader is entitled to relief.” Garcia-Catalén v. United States, 734 F.3d 100, 102 (1st Cir. 2013) (quoting Fed. R. Civ. P. 8(a)(2)). At this stage, “the plaintiff need not demonstrate that she is likely to prevail, but her claim must suggest ‘more than a sheer possibility that a defendant has acted unlawfully.” Jd. at 102-03 (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). The “complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.” Jgba/, 556 U.S. at 678 (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)).

“The plausibility inquiry necessitates a two-step pavane.” Garcia-Catalan, 734 F.3d at 108. “First, the court must distinguish ‘the complaint’s factual allegations (which must be accepted as true) from its conclusory legal allegations (which need not be credited).” Jd (quoting Morales-Cruz v. Univ. of P.R., 676 F.3d 220, 224 (1st Cir. 2012)). “Second, the court must determine whether the factual allegations are sufficient to support ‘the reasonable inference that the defendant is liable for the misconduct alleged.” Jd. (quoting Haley v. City of Boston, 657 F.3d 39, 46 (1st Cir. 2011)). “In determining whether a complaint crosses the plausibility threshold, ‘the reviewing court [must] draw on its judicial experience and common sense.” Jd. (alteration in original) (quoting Jgba/, 556 U.S. at 679). III. DISCUSSION There are essentially four motions to dismiss covering the ten counts and request for injunctive relief at issue here because each of the four Defendants filed identical motions in each of the two cases. The Court will address the motions by Count for ease of discussion. A. ‘Count 1 - Strict Liability (NG-LNG) Plaintiffs bring a strict liability claim against NG-LNG, alleging that it knew or should have known that the infrastructure used to store the LNG “was susceptible to equipment failures resulting in low gas flow and exhibited problems (or the potential for problems) with respect to the inability to vaporize gas that may lead to low gas pressurization to its affiliate Narragansett’s customers.” BHK ECF No. 32 {| 48; Johnson ECF No. 31 § 54.

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Bluebook (online)
Johnson v. The Narragansett Electric Company d/b/a National Grid, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-the-narragansett-electric-company-dba-national-grid-rid-2021.