PEABODY ENERGY CORPORATION v. STRATA PRODUCTS WORLDWIDE, LLC

Court of Appeals of Georgia·Decided June 24, 2025·No. A25A0550·Published

Opinion

FIRST DIVISION

BARNES, P. J.,

BROWN and WATKINS, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

June 24, 2025

In the Court of Appeals of Georgia A25A0550. PEABODY ENERGY CORPORATION v. STRATA PRODUCTS WORLDWIDE, LLC et al.

BROWN, Judge.

Peabody Energy Corporation (“Peabody Energy”) appeals from the trial court’s denial of its motion to strike a libel claim asserted against it by Strata Products Worldwide, LLC, Strata Products (USA), LLC, Strata Mine Services, LLC, Collin Tennant, and Andrew Nunnery (collectively “Strata Products”). In its sole enumeration of error, Peabody Energy asserts that the trial court erred in denying its anti-SLAPP motion brought pursuant to OCGA § 9-11-11.1 because its statements should be considered as true. For the reasons explained below, we affirm.

1. Georgia’s Anti-SLAPP Statute. “Strategic lawsuits against public participation, or ‘SLAPPs,’ are meritless lawsuits brought not to vindicate legally cognizable rights, but instead to deter or punish the exercise of constitutional rights of petition and free speech by tying up their target’s resources and driving up the costs of litigation.” (Footnote omitted.) Wilkes & McHugh, P.A. v. LTC Consulting, 306 Ga. 252, 257 (2) (830 SE2d 119) (2019). Our General Assembly enacted an anti-SLAPP provision in 1996, OCGA § 9-11-11.1, which it later revised in 2016 “to substantially track California’s anti-SLAPP procedure as set out in California Code of Civil Procedure § 425.16.” Id. “[T]he 2016 amendment fundamentally altered the mechanics of the anti-SLAPP procedure. Thus, our precedents construing the pre- amendment version of OCGA § 9-11-11.1 are of limited utility in interpreting the revised anti-SLAPP statute.” Id. at 258 (2).

Under the current procedure,

[a] claim for relief against a person or entity arising from any act of such person or entity which could reasonably be construed as an act in furtherance of the person’s or entity’s right of petition or free speech under the Constitution of the United States or the Constitution of the State of Georgia in connection with an issue of public interest or concern shall be subject to a motion to strike unless the court determines that the

nonmoving party has established that there is a probability that the nonmoving party will prevail on the claim.

OCGA § 9-11-11.1 (b) (1). A court making the determination provided for in paragraph (b) (1) of the anti-SLAPP statute “shall consider the pleadings and supporting and opposing affidavits stating the facts upon which the liability or defense is based[.]” OCGA § 9-11-11.1 (b) (2). “We generally review a trial court’s ruling on an anti- SLAPP motion to strike de novo, viewing the pleadings and affidavits submitted by the parties in the light most favorable to the plaintiff (as the non-moving party).” (Citation and punctuation omitted.) PNC Financial Svcs. Group v. Gibson, 371 Ga. App. 660, 661 (1) (901 SE2d 331) (2024). With this framework in mind, we now turn to the underlying event at issue.

2. Fire at Shoal Creek Mine. Peabody Energy owns the Shoal Creek Mine, a large underground coal mine in Alabama. Strata Products, collectively, sell or install a product called “Strata Advanced Foam Solution.” It “is a single-component polyurethane resin that has multiple applications in the mining context[,]” such as providing an impermeable “barrier to seal against or divert water.” “When injected into rock and strata layers, it also generates compressive strength and strong adhesion

to rock fragments, solidifying the strata and fortifying the underground structure. . . . [It is] well[ ]suited for large voids and cavities within mines.” It “is mixed with a catalyst, such as Strata’s ‘Extra Fast[.]’ Collectively, they are referred to as ‘Strata Foam.’” An expert retained by Strata Products “investigated the possibility that [its] Extra Fast foam could self-ignite due to heating during pumping” and “changes in the chemical, thermal, and mechanical properties of the foam arising from the addition of . . . fuels and solvents to [it].” (Punctuation omitted.) The expert concluded after two rounds of testing that Strata Products’ Extra Fast foam “does not reach temperatures sufficient to allow self-ignition[,]” that it “reaches its maximum temperature . . . less than 30 minutes after the beginning of foam pumping, after which the temperature begins to drop until reaching ambient temperatures,” and that “there is no basis for concluding that [it] is capable of self-ignition.” “The temperature at which [it] combusts, as determined by thermogravimetry, is approximately 500 [degrees] F, whereas the maximum observed temperature during cure was 261 [degrees] F, a difference of 239 [degrees] F.”

In February and March 2023, Strata Products employees pumped Strata Foam at the Shoal Creek mine “without incident of any fire or other unusual

circumstances.” On March 28, defendant Tennant and another Strata Products employee pumped Strata Foam into roof voids at the Shoal Creek Mine the entire day until Shoal Creek Mine managers asked them to stop “because they had other work to do.” They left at 8:00 p.m., and at the time of their departure, there was no smoke or fire.

Around 3:30 a.m. on March 29, smoke was observed in the area where the Strata Foam had been installed the day before. At some point that morning, a fire broke out in the same area that was extinguished by 12:00 p.m. The general mine foreman at the Shoal Creek Mine averred in an affidavit that he saw a portion of void fill material on fire that had fallen out and that when he looked up, he could see that void fill material was on fire. According to Tennant, a mine supervisor told him while he was on-site during the incident that he believed the mine was experiencing spontaneous combustion and that a different mine worker stated that the shearer on a machine had been cutting rocks before the smoke and fire broke out. Tennant explained that cutting rock “creates a tremendous amount of friction and sparks that resemble a fireworks show.” Additionally, after Tennant left at 8:00 p.m., mine personnel pulled “chain” and lowered shields, activities that “have the potential to

cause friction and sparks which can ignite gas in an underground coal mine and/or cause combustion of residual carbonaceous material.” Strata Products alleged in its complaint that Shoal Creek Mine suffered an explosion and fire in 2006 attributed to the ignition of a flammable methane/air mixture during a roof fall.

On March 29, 2023, Peabody Energy issued a press release titled “Peabody Confirms Incident at Shoal Creek Mine” and stating: “Peabody (NYSE: BTU) today confirmed a fire that began earlier today at Shoal Creek Mine involving void fill material utilized to stabilize the roof structure of the mine. . . . The incident remains subject to further investigation.” (Emphasis supplied.) The same day, it published the press release on its website and also filed a Form 8-K with the Securities and Exchange Commission (“SEC”), attaching a copy of its press release. Peabody Energy repeated its statement about the fire “involving void fill material” in Form 8-Ks filed with the SEC on April 27, 2023 and June 20, 2023, a form 10-Q filed with the SEC on May 4, 2023, and another press release posted on its website on June 20, 2023.

3. Procedural History. In July 2023, Strata Products filed a complaint against Peabody Energy and its wholly-owned subsidiary Peabody Southeast Mining, LLC (“Peabody Mining”), which it amended 11 days later. Strata Products’ claims against

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