STERLING PLANET, INC. v. GRP HOLDCO, LLC

CourtCourt of Appeals of Georgia
DecidedMarch 11, 2025
DocketA24A1281
StatusPublished

This text of STERLING PLANET, INC. v. GRP HOLDCO, LLC (STERLING PLANET, INC. v. GRP HOLDCO, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STERLING PLANET, INC. v. GRP HOLDCO, LLC, (Ga. Ct. App. 2025).

Opinion

FIFTH DIVISION MERCIER, C. J., MCFADDEN, P. J., and RICKMAN, P. J.

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

March 11, 2025

In the Court of Appeals of Georgia A24A1281, A24A1282. STERLING PLANET, INC. v. GRP HOLDCO, LLC et al; and vice versa.

RICKMAN, Presiding Judge.

In this business dispute involving renewable energy certificates, Sterling Planet,

Inc. appeals the Georgia State-wide Business Court’s Order on Pending Motions and,

in Case Number A24A1281, contends that the business court erred in striking certain

portions of an affidavit submitted in support of Sterling’s motion for partial summary

judgment, granting GRP Holdco, LLC, GRP Madison, LLC, and GRP Franklin,

LLC’s (collectively, “GRP”) motion for summary judgment on Sterling’s promissory

estoppel claim, and denying Sterling’s motion for summary judgment on GRP’s

conversion claim. GRP cross-appeals the same order and, in Case No. A24A1282,

contends that the business court erred in denying its motion for partial summary judgment on its conversion claim and in denying its motion for sanctions pursuant to

OCGA § 9-15-14. For the reasons that follow, we affirm in both cases.

“On appeal from the grant or denial of summary judgment, we conduct a de

novo review, with all reasonable inferences construed in the light most favorable to the

nonmoving party.” (Citation and punctuation omitted.) Phillips v. Adams, Jordan &

Herrington, P.C., 350 Ga. App. 184, 184 (828 SE2d 414) (2019). “On cross-motions

for summary judgment, each party must show there is no genuine issue of material fact

and that each, respectively, is entitled to summary judgment as a matter of law; either

party, to prevail by summary judgment, must bear its burden of proof.” (Citation and

punctuation omitted.) White v. Gens, 348 Ga. App. 145, 146 (1) (820 SE2d 254)

(2018).

At the outset, we note that renewable electricity generation can be split into two

parts: the electricity produced by a renewable generator and the renewable or

environmental “attributes” of that generation. See Katrina M. Wyman & Adalene

Minelli, Propertizing Environmental Attributes, 39 Yale J. on Reg. 1391, 1397 (2022)

(defining environmental attributes). The environmental attributes can be unbundled

2 from the energy itself and sold separately as renewable energy certificates (RECs). See

id. at 1396.

Here, the record shows that GRP Holdco indirectly owns two renewable energy

power plants located in Georgia: GRP Franklin Renewable Energy Facility, which is

operated by GRP Franklin, LLC; and GRP Madison Renewable Energy Facility, which

is operated by GRP Madison, LLC.1 The GRP Franklin and GRP Madison facilities

supply electricity to the power grid for residential and commercial consumption.

Because the biomass that powers the GRP facilities’ steam turbines is considered a

renewable resource, the facilities qualify for RECs, which are issued based on the

amount of power generated. Each REC at issue here represents the environmental

attributes associated with the generation of one megawatt hour (“MWh”) of

renewable energy.

Sterling is a self-described marketer of environmental attributes. In May 2021,

Sterling CEO and chairman Therrell “Sonny” Murphy, Jr. reached out to GRP

seeking to discuss GRP’s RECs and Sterling’s ability to “create some real value for

GRP.” In two transactions in August 2021, Sterling purchased RECs from GRP for

1 GRP Holdco is the managing member of GRP Franklin, LLC and GRP Madison, LLC. 3 $1.00 per REC. Both sales were documented by written Renewable Energy Certificate

Purchase Agreements that were signed by both parties.

In July and August 2021, Sterling and GRP discussed the possibility of

increasing the market value of GRP’s RECs by obtaining Green-e certification for the

RECs from the Center for Resource Solutions.2 Sterling informed GRP that it needed

to execute documents naming Sterling as the “Responsible Party” on the North

American Renewables (“NAR”) Registry3 before Sterling could begin the Green-e

certification process. In November 2022, GRP executed the necessary documents,

which gave Sterling the “full and sole management and authority over the transactions

and activities related to the Asset within NAR.”4 In practice, that meant that the GRP

facilities were registered with NAR, that the RECs attributable to the renewable

energy generated by the facilities would go into Sterling’s NAR account as the

2 The Center for Resource Solutions determines Green-e eligibility and issues Green-e certification of RECs. 3 The NAR Registry is an electronic tracking system, managed by APX, Inc., that facilitates the sale and transfer of RECs. Each REC has a unique serial number attached to it. 4 The NAR Registry defines an Asset as “either a renewable energy generator, a contract with a renewable energy generator, or an Aggregated Project registered by an Account Holder in the Registry.” Here, the Assets were the GRP facilities. 4 designated Responsible Party, and Sterling would manage the RECs on the NAR

Registry on GRP’s behalf.

In February 2022, the newly installed President and CEO of GRP Holdco,

Charles Abbott, reached out to Sterling to discuss the GRP facilities. Sonny Murphy

responded on Sterling’s behalf, indicated that he wanted to discuss Sterling’s

relationship with GRP, and forwarded an unsigned 2015 “Renewable Energy

Certificate Marketing Agreement” between Sterling and Green Fuels Energy, LLC,

which Murphy claimed “was negotiated with the purchase of the plant.”5 The 2015

agreement contemplated that Sterling would market “Project RECs” for a term of six

years but contained no contract price for the sale of the RECs. Minutes later, Murphy

sent Abbott what he referred to as “a template of the agreement to be used in year 8

of my negotiations,” which was an unsigned 2022 “Renewable Energy Certificate

Marketing Agreement” between Sterling and an unnamed “Generator” with an REC

contract price provision that would allow Sterling to retain a 20 percent fee for RECs

purchased from the generator by Sterling’s customers. After reviewing Sterling’s

5 In 2014, a Sterling-owned entity sold to a GRP-owned entity a plant that subsequently became GRP Franklin. In this litigation, Murphy has taken the position that part of the compensation to Sterling for the sale was that Sterling would serve as the REC marketer for the GRP facilities. 5 proposed 20 percent marketing fee, Abbott responded that GRP would be willing to

pay a fixed fee of $150,000, plus a 4 percent brokerage fee for REC sales made by

Sterling. Murphy rejected that offer.6

On July 21, 2022, Abbott contacted the NAR Registry and requested the

recission of Sterling’s Responsible Party designation for the GRP facilities on the

registry. That same day, Charles Li, the senior administrator of APX and the manager

of the NAR Registry, contacted Sterling’s vice president of client services, Valerie

Johnson, and notified her of Abbott’s request that the GRP facilities and all RECs

associated with the facilities be transferred to GRP’s account. Li attached a list of the

RECs to the July 21 email, on which Abbott was copied, and asked Johnson, “Can you

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