MidAmerica C2L Incorporated v. Siemens Energy, Inc.

CourtDistrict Court, M.D. Florida
DecidedFebruary 5, 2024
Docket6:17-cv-00171
StatusUnknown

This text of MidAmerica C2L Incorporated v. Siemens Energy, Inc. (MidAmerica C2L Incorporated v. Siemens Energy, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MidAmerica C2L Incorporated v. Siemens Energy, Inc., (M.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

MIDAMERICA C2L INCORPORATED and SECURE ENERGY, INC.,

Plaintiffs,

v. Case No: 6:17-cv-171-PGB-LHP

SIEMENS ENERGY, INC.,

Defendant. / ORDER This cause is before the Court on Siemens Energy, Inc.’s (“Siemens”) Renewed Motion for Summary Judgment. (Doc. 336 (the “Motion”)). Plaintiffs MidAmerica C2L Inc. and Secure Energy Inc. (collectively “Secure”) submitted a Response in Opposition (Doc. 337), and Siemens Energy, Inc. replied. (Doc. 338). Upon due consideration, the Motion is granted. I. BACKGROUND This lawsuit arises from a contract dispute between Plaintiffs, Secure Energy, Inc. and its subsidiary MidAmerica C2L, Inc., and Defendant Siemens. (Doc. 63, ¶¶ 5–8). On December 24, 2007, Secure and Siemens executed a contract (the “2007 Contract”) requiring Siemens to sell certain equipment to Secure for use at a coal gasification plant located in Decatur, Illinois, where Secure planned to operate an industrial facility for the conversion of coal into natural gas. (Id. ¶¶ 5, 8). Secure paid Siemens approximately $40 million for the equipment. (Id. ¶ 10). On March 31, 2010, Secure and Siemens executed a contract (“2010 Completion Agreement”) stating that both parties had fulfilled their

obligations to each other under the 2007 Contract. (Id. ¶ 11). On the same day, Secure and Siemens entered into a License and Service Agreement (“2010 License Agreement”) through which Siemens granted Secure a license to use certain of its patented technologies for the development, construction, and operation of the Decatur, Illinois, coal gasification plant. (Id. ¶ 12).

On July 18, 2012, the 2010 License Agreement was terminated by mutual agreement, and, on the same day, MidAmerica C2L Inc. and Siemens entered into a new License and Service Agreement (“2012 License Agreement”) in which Siemens granted MidAmerica C2L Inc. a license to use certain of its technologies for a coal gasification plant in West Paducah, Kentucky, where MidAmerica C2L Inc. would convert coal into methanol.1 (Id. ¶ 16). In both the 2010 and 2012

License Agreements, Siemens agreed to provide technology, engineering services, technical field assistance, training, and performance guarantees relating to the Equipment conveyed in the 2007 Contract in exchange for a license fee. (Id. ¶¶ 12–13, 16–17).

1 Secure’s attempt to operate a coal gasification plant in Decatur, Illinois, did not come to fruition, and in July 2012, Secure’s focus turned to the operation of a plant in West Paducah, Kentucky, to convert coal into methanol. (Doc. 63, ¶ 16). Plaintiff also tried to employ coal gasification to manufacture gasoline and fertilizer. (Id. ¶ 17). The Kentucky plant never materialized. (Id. ¶¶ 20–24). On February 2, 2016, Siemens informed Secure that Siemens would be closing the fuel gasification division of its business. (Doc. 169, p. 20, ¶ 8). On February 11, 2016, Secure demanded rescission of the 2007 Contract and return

of all monies paid by Secure under the 2007 Contract. (Doc. 149-7, pp. 66–69; Doc. 169, p. 20, ¶ 9). In response, on February 17, 2016, Siemens informed Secure that Siemens will not violate any contractual obligation by its strategic exit from the coal gasification business. (Doc. 149-7, pp. 70–71; Doc. 169, p. 20, ¶ 10). The parties met on March 2, 2016. (Doc. 169, p. 20, ¶ 11). Then, on March 18, 2019,

Siemens offered to extend deadlines for completion of its performance tests as defined by the 2012 License Agreement from December 31, 2015, to December 31, 2021, if Plaintiffs paid the full remaining balance of the fee required under the 2012 License Agreement on or before July 1, 2016. (Doc. 149-7, pp. 72–73; Doc. 169, p. 20, ¶ 12). Plaintiffs rejected Siemens’ offer on March 31, 2016. (Doc. 149- 7, p. 74; Doc. 149-8, pp. 2–3; Doc. 169, p. 20, ¶ 13). On April 14, 2016, Siemens

revoked its offer and demanded payment of a termination fee under the 2012 License Agreement. (Doc. 149-8, pp. 4–6). On April 19, 2019, Siemens invoiced MidAmerica C2L Inc. for the termination fee. (Doc. 169, p. 20, ¶ 15). In May 2018, Siemens closed its coal gasification division. (Id. ¶ 16). Plaintiffs maintain that Siemens learned of material design defects in the

equipment sold to Secure at some time between October 31, 2010, and September 2011 “based on the experience of a plant in China that used identical” equipment. (Doc. 63, ¶ 14). Plaintiffs allege six Counts against Siemens: Breach of Contract (Count I); Breach of Warranty of Fitness for Particular Purpose (Count II); Fraudulent Misrepresentation – Siemens’ Support of Project (Count III); Fraudulent Misrepresentation – Failure to Disclose Defects in Technology (Count

IV); Rescission – Fraud (Count V); and Rescission – Failure of Consideration (Count VI). (Id. ¶¶ 25–92). Siemens counter-sued Plaintiffs for breach of contract arising from Plaintiffs’ failure to render payment for the License and Service Agreement as required. (Doc. 75, pp. 20–21). The Court granted in part Siemens’s motion for summary judgment, (Docs.

203, 208), the parties proceeded to trial on Siemens’s breach of contract counterclaim, and the jury returned a verdict for Siemens. (Doc. 287). The Eleventh Circuit affirmed the district court’s entry of summary judgment for Siemens, the denial of Secure’s belated motion for leave to amend the complaint,2 and the ruling on the motions in limine. (Doc. 315). About a year later, the Eleventh Circuit applied a prudential forfeiture rule announced in United States

v. Campbell, 26 F.4th 860 (11th Cir. 2022), and found it could not consider the alternative grounds for summary judgment not raised on appeal. (Doc. 319, p. 30). Accordingly, the Eleventh Circuit reversed its earlier affirmance of summary judgment as to Counts II, IV, V, and VI. 3 (Id. at 32).

2 Secure sought leave to file a second amended complaint more than two years after the deadline for amending pleadings and after the parties briefed summary judgment. (Doc. 212). The Court denied the motion, and the operative complaint is the First Amended Complaint (the “FAC”) at Docket Number 63. (Doc. 213). Secure may not expand its theory of the case beyond what it pleaded in the FAC.

3 Secure incorrectly contends the Eleventh Circuit remanded Counts II, IV, V, and VI after “realizing its error” in originally finding Secure had voluntarily dismissed its claim for II. LEGAL STANDARD A court may only “grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment

as a matter of law.” FED. R. CIV. P. 56(A). The party moving for summary judgment must “cit[e] to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations . . . , admissions, interrogatory answers, or other materials” to support its position that it is entitled to summary judgment. FED. R. CIV. P. 56(C)(1)(A).

“The court need consider only the cited materials.” FED. R. CIV. P. 56(C)(3).4 “The burden then shifts to the non-moving party, who must go beyond the pleadings, and present affirmative evidence to show that a genuine issue of material fact exists.” Porter v. Ray, 461 F.3d 1315, 1320 (11th Cir. 2006). “The court need consider only the cited materials” when resolving a motion for summary judgment. FED. R. CIV. P. 56(C)(3); see also HRCC, Ltd. v. Hard Rock Café Int’l

(USA), Inc., 703 F. App’x 814, 816–17 (11th Cir. 2017) (per curiam) (holding that a

fraudulent inducement” of the 2007 Contract. (Doc. 337, pp. 8–9).

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MidAmerica C2L Incorporated v. Siemens Energy, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/midamerica-c2l-incorporated-v-siemens-energy-inc-flmd-2024.