PINNACLE MIN. CO., LLC v. Bluestone Coal Corp.

624 F. Supp. 2d 530, 2009 U.S. Dist. LEXIS 25519, 2009 WL 853983
CourtDistrict Court, S.D. West Virginia
DecidedMarch 27, 2009
DocketCivil Action 5:08-cv-00931
StatusPublished
Cited by8 cases

This text of 624 F. Supp. 2d 530 (PINNACLE MIN. CO., LLC v. Bluestone Coal Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PINNACLE MIN. CO., LLC v. Bluestone Coal Corp., 624 F. Supp. 2d 530, 2009 U.S. Dist. LEXIS 25519, 2009 WL 853983 (S.D.W. Va. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

THOMAS E. JOHNSTON, District Judge.

Pending before the Court are Plaintiff Pinnacle Mining Company, LLC’s Motion for Preliminary Injunction [Docket 8], Defendants Bluestone Coal Corporation (Bluestone), Bluestone Industries, Inc., and Double-Bonus Coal Company’s Motion to Dismiss [Docket 16], and Defendants’ Request to Present Oral Argument [Docket 21]. The motions have been fully briefed and are ripe for the Court’s review.

I. BACKGROUND AND PROCEDURAL HISTORY

This action arises out of Defendants’ allegedly illegal underground coal mining into the buffer zone beneath Plaintiffs Smith Branch Impoundment (impoundment). Plaintiff filed a five-count amended complaint alleging that in August of 2007, Defendants conducted “underground mining that penetrated the safety zone of the [impoundment] in violation of state and federal laws and its permit.” (Docket 7 ¶ 10.) Plaintiff avers that Defendants’ mining has affected the integrity of the impoundment. Specifically, Plaintiff claims that “[a]s a result of the removal of support caused by Defendants’ mining, cracks have formed on the impoundment’s walls indicating that the stability of the structure has been affected.” (Docket 9 at 2.) Consequently, the West Virginia Department of Environmental Protection (WVDEP) and the United States Department of Labor Mine Safety and Health Administration (MSHA) have become involved. Upon WVDEP’s order, both Plaintiff and Defendants submitted reports regarding what remedial measures are necessary preserve the safety and integrity of the impoundment. In addition, Plaintiff filed a report with MSHA. To compile the reports, Plaintiff incurred expenses by procuring engineering experts. Aso, because neither WVDEP nor MSHA has determined what remedial measures are necessary, Plaintiff anticipates that it may have to take additional steps in the future to preserve the integrity of its impoundment.

Count One of Plaintiffs amended complaint alleges that Defendants were negligent and/or reckless in conducting mining operations, which compromised Plaintiffs impoundment and required Plaintiff to take steps to ensure the integrity of the *534 compound. Count Two asserts that Defendants are strictly liable for all damages resulting from their violations. Count Three contends that Plaintiff is entitled to damages as a result of Defendants’ violation of the federal Surface Mining Control and Reclamation Act. Count Four seeks an injunction requiring Defendants to continue pumping the water from its mine and to provide financial assurance that the water will be pumped in perpetuity. Finally, Count Five asserts that Defendants Blue-stone Coal Corporation, Double-Bonus Coal Company, and Bluestone Industries are alter egos, and their corporate structures should be disregarded, making each liable for the others’ acts in this action.

In addition to its amended complaint, Plaintiff filed a Motion for a Preliminary Injunction [Docket 8] to require Defendants to continue pumping water from the coal mine. Defendants filed a Motion to Dismiss each count of the amended complaint [Docket 16] and a Request to Present Oral argument in support of their motion [Docket 21]. 1

II. MOTION TO DISMISS

Defendants’ motion to dismiss, in which they argue that Plaintiffs amended complaint fails to state a claim upon which relief can be granted, must be evaluated under the pleading standard set forth in Rule 8(a)(2) of the Federal Rules of Civil Procedure and in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Rule 8(a)(2) requires only that a claim for relief contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” The statement must merely “give the defendant fair notice of what the ... claim is and the grounds upon which its rests.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955 (quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)).

Twombly states that a well-pleaded complaint must aver “enough facts to state a claim to relief that is plausible on its face.” Id. at 570,127 S.Ct. 1955. A “plausible” claim cannot be supported by mere “labels and conclusions.” Id. at 555, 127 S.Ct. 1955. Rather, the complaint’s “[f]actual allegations must be enough to raise a right to relief above the speculative level,” id., and critical elements of a claim must be, at a minimum, “suggested by the facts,” id. at 569, 127 S.Ct. 1955. In testing the sufficiency of the complaint, the Court must “accept! ] all well-pleaded allegations in the plaintiffs complaint as true and draw[ ] all reasonable inferences from those facts in the plaintiffs favor.” Chao v. Rivendell Woods, Inc., 415 F.3d 342, 346 (4th Cir.2005).

A. Count One

Count One alleges that Defendants were “negligent, grossly negligent, and/or reckless in conducting mining operations which penetrated the safety zone of the [] impoundment” and requests “an award of damages resulting from [Defendants’] conduct, including but not limited to, damages for engineering and monitoring costs, remedial measures, punitive and consequential damages.” (Docket 7 ¶¶ 20-23.)

In their motion to dismiss, Defendants argue that Count One should be dismissed or stayed under the doctrine of primary jurisdiction until the WVDEP and MSHA reach their regulatory determinations. The doctrine of primary jurisdiction “is a doctrine specifically applicable to claims properly cognizable in court that *535 contain some issue within the special competence of an administrative agency.” Reiter v. Cooper, 507 U.S. 258, 268, 113 S.Ct. 1213, 122 L.Ed.2d 604 (1993). “[I]n such a case the judicial process is suspended pending referral of such issues to the administrative body for its views.” United States v. W. Pac. R.R., 352 U.S. 59, 64, 77 S.Ct. 161, 1 L.Ed.2d 126 (1956). The doctrine of primary jurisdiction is designed to promote two goals: uniformity and the application of specialized knowledge of agencies. Id. In deciding whether to apply the discretionaiy doctrine, a court must determine “whether the reasons for the existence of the doctrine are present and whether the purposes it serves will be aided by its application in the particular litigation.” Id. To aide its decision, this Court considers the following four factors:

First, whether the issue is within the conventional experience of the judiciary. Second, whether the disposition of the issue is dependant on a subject matter that requires the agency’s specialized expertise.

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624 F. Supp. 2d 530, 2009 U.S. Dist. LEXIS 25519, 2009 WL 853983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinnacle-min-co-llc-v-bluestone-coal-corp-wvsd-2009.