Tennessee Valley Authority v. Fire Star Energy Resources, LLC

CourtDistrict Court, E.D. Tennessee
DecidedJune 9, 2025
Docket3:23-cv-00424
StatusUnknown

This text of Tennessee Valley Authority v. Fire Star Energy Resources, LLC (Tennessee Valley Authority v. Fire Star Energy Resources, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennessee Valley Authority v. Fire Star Energy Resources, LLC, (E.D. Tenn. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TENNESSEE

TENNESSEE VALLEY AUTHORITY, ) ) Plaintiff, ) ) v. ) No.: 3:23-CV-424-TAV-DCP ) FIRE STAR ENERGY RESOURCES, ) LLC, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

Before the Court is plaintiff’s Motion for Summary Judgment [Doc. 37]. Defendant responded in opposition [Doc. 46], and plaintiff replied [Doc. 48]. Accordingly, this matter is ripe for review. See E.D. Tenn. L.R. 7.1(a). For the reasons below, plaintiff’s Motion for Summary Judgment [Doc. 37] will be GRANTED in part and DENIED in part. I. Background This breach of contract dispute arises from the circumstances surrounding defendant’s failure to supply coal to plaintiff as contemplated by their written agreements. In 2021, the parties entered into two separate contracts for the provision of coal, copies of which appear to be attached to plaintiff’s complaint [See Docs. 1, 1-1, 1-2]. These agreements, referred to as “Contract 559” and “Contract 585” (collectively, the “Contracts”), obligated defendant to supply a specified quantity of coal upon the request, acceptance, and scheduling of delivery trains by plaintiff [Doc. 1-2, pp. 4–8]. Specifically, defendant agreed to supply, and plaintiff agreed to purchase, a total of 102,600 tons of coal under Contract 559 and 184,000 tons of coal under Contract 585 [Doc. 1-1, p.5; Doc. 1-2, p. 5].1 In terms of shipping logistics, plaintiff reserved trains for coal deliveries using an online scheduling system called ShipCSX [Doc. 32 ¶ 6]. According to Zane H. K. Irby, a Senior Logistics Specialist employed by plaintiff, once the Tennessee

Valley Authority (“TVA”) entered a train reservation on ShipCSX, defendant was responsible for activating that reservation through the platform [Id.]. Initially, both parties appear to have rendered their respective performances under Contracts 559 and 585, including through use of the ShipCSX platform [See Doc. 36-2; Doc. 36 ¶¶ 6–8]. For example, in July 2021, plaintiff reserved a delivery train designated

by ShipCSX as reservation number W602 pursuant to Contract 559 [Doc. 36-2, p. 3]. This delivery is designated in the software’s log as “Completed” with a load date of July 12, 2021, at which time defendant supplied 11,328.88 tons of coal [Id.; Doc. 33 ¶ 6]. However, by the expiration of both Contracts, defendant had failed to provide a cumulative 68,181.50 tons under Contract 559 and 104,231.63 tons under Contract 585

[Doc. 33 ¶¶ 7, 12]. While defendant does not appear to dispute its failure to fully perform under the Contracts, it argues that its performance was excused by (i) plaintiff’s prior material breach; and/or (ii) force majeure [See Doc. 46]. Ultimately, plaintiff purchased 67,477.72 tons of coal at an average price of $72.58 per ton to compensate for the shortfalls in defendant’s deliveries under Contract 559, resulting in claimed damages of $578,958.84

[Id. ¶ 9]. As for Contract 585, plaintiff purchased 98,454.58 tons of coal at an average

1 Although Contract 585 originally contemplated only 138,000 tons, subsequent partially executed call options expanded this initial obligation to 184,000 tons [See Doc. 9 ¶¶ 46 (defendant admitting to the same)]. price of $197.58 per ton, resulting in claimed damages of $11,303,570.33 [Id. ¶ 13]. Plaintiff brings two breach of contract claims, one stemming from Contract 559 (Count I) and one stemming from Contract 585 (Count II) [Doc. 1 ¶¶ 56–65]. In its answer,

defendant asserts several defenses2 to these claims, including prior material breach by plaintiff, force majeure, failure to satisfy conditions precedent on the part of plaintiff, and estoppel [Doc. 9, pp. 7–8]. II. Standard of Review Summary judgment under Federal Rule of Civil Procedure 56 is proper only “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 moving party bears the initial burden of establishing that no genuine issues of material fact exist. Celotex Corp. v. Catrett, 477 U.S. 317, 330 n.2 (1986); Moore v. Philip Morris Cos., 8 F.3d 335, 339 (6th Cir. 1993). Furthermore, all facts and inferences that the Court draws from the record before

it must be viewed in the light most favorable to the nonmoving party. Matsushita Electrical Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986); Burchett v. Kiefer, 301 F.3d 937, 942 (6th Cir. 2002). Yet, “[o]nce the moving party presents evidence sufficient to support a motion under Rule 56, the nonmoving party is not entitled to a trial merely on the basis of allegations.”

Curtis Through Curtis v. Universal Match Corp., 778 F. Supp. 1421, 1423 (E.D. Tenn.

2 Defendant also asserted a counterclaim against plaintiff in its answer [Doc. 9, pp. 8–12]; however, the Court granted plaintiff’s motion to dismiss as to this counterclaim in its prior Memorandum Opinion and Order [Doc. 26]. 1991) (citing Celotex, 477 U.S. at 317). To establish a genuine issue as to the existence of a particular element, the nonmoving party must point to evidence in the record upon which a reasonable finder of fact could find in its favor. Anderson v. Liberty Lobby, Inc., 477 U.S.

242, 248 (1986). The genuine issue must also be material; that is, it must involve facts that might affect the outcome of the suit under the governing law. Id. The court’s function at the point of summary judgment is limited to determining whether sufficient evidence has been presented to make the issue of fact a proper question for the factfinder. Id. at 250. The court does not weigh the evidence or determine the truth

of the matter. Id. at 249. Nor does the court search the record “to establish that it is bereft of a genuine issue of material fact.” Street v. J.C. Bradford & Co., 886 F.2d 1472, 1479–80 (6th Cir. 1989). Thus, “the inquiry performed is the threshold inquiry of determining whether there is the need for a trial—whether, in other words, there are any genuine factual issues that properly can be resolved only by a finder of fact because they may reasonably

be resolved in favor of either party.” Anderson, 477 U.S. at 250. III. Analysis The parties do not appear to dispute that the Contracts were validly formed and enforceable, nor does defendant disagree that it breached both agreements by failing to deliver the quantity of coal contemplated therein [See Docs. 38, 46]. Rather, the disputed

issues are whether defendant has a valid excuse for its non-performance of both Contracts and, if not, the appropriate calculation of damages. This Court has already determined that federal common law governs this dispute [See Doc. 26, pp. 4–5 (citing Gillham v. TVA, 488 F. App’x 80, 83–84 (6th Cir. 2012) (“Because the contract at issue involves the United States and was entered into pursuant to a federal statute, federal common law applies.”))]. To recover for breach of contract under federal common law, a party must show “(1) a valid contract between the parties, (2) an

obligation or duty arising out of the contract, (3) a breach of that duty, and (4) damages caused by the breach.” Oliva v. United States,

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Mcpherson v. Kelsey
125 F.3d 989 (Sixth Circuit, 1997)
United States v. Lynn J. Replogle
301 F.3d 937 (Eighth Circuit, 2002)
Randall W. Gilbert v. Department of Justice
334 F.3d 1065 (Federal Circuit, 2003)
Curtis v. Universal Match Corp.
778 F. Supp. 1421 (E.D. Tennessee, 1991)
Georgia Brown v. VHS of Michigan, Inc.
545 F. App'x 368 (Sixth Circuit, 2013)
Laguna Construction Company v. Defense
828 F.3d 1364 (Federal Circuit, 2016)
Oliva v. United States
961 F.3d 1359 (Federal Circuit, 2020)
Aspen Consulting, LLC v. Secretary of the Army
25 F.4th 1012 (Federal Circuit, 2022)
Tennessee Valley Authority v. United States
60 Fed. Cl. 665 (Federal Claims, 2004)
Park Properties Associates, L.P. v. United States
82 Fed. Cl. 162 (Federal Claims, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
Tennessee Valley Authority v. Fire Star Energy Resources, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennessee-valley-authority-v-fire-star-energy-resources-llc-tned-2025.