Trireme Energy Development v. RWE Renewables

Court of Appeals for the Second Circuit·Decided September 1, 2026·No. 24-3190·Published

Opinion

24-3190 Trireme Energy Development v. RWE Renewables

United States Court of Appeals For the Second Circuit

August Term 2025

Argued: October 20, 2025

Decided: September 1, 2026

No. 24-3190

TRIREME ENERGY DEVELOPMENT, LLC, TRIREME ENERGY HOLDINGS, INC.,

Plaintiffs-Appellants,

v.

RWE RENEWABLES AMERICAS, LLC, RWE RENEWABLES SERVICES, LLC,

Defendants-Appellees.

Appeal from the United States District Court for the Southern District of New York No. 22-cv-7439, Jennifer L. Rochon, Judge.

Before: LEVAL, PARKER, and SULLIVAN, Circuit Judges.

Plaintiffs Trireme Energy Holdings, Inc. and Trireme Energy Development, LLC (collectively “Trireme”) appeal from a judgment of the United States District Court for the Southern District of New York (Rochon, J.) dismissing their breach- of-contract claim against RWE Renewables Americas, LLC and RWE Renewables Services, LLC. In an earlier suit that was functionally against the same defendants, Trireme moved unsuccessfully to amend its complaint to assert the same claim. After the district court denied that motion, Trireme did not appeal but instead commenced this action, only to have the district court conclude that res judicata blocked Trireme from reasserting the same claim.

In determining whether to permit a plaintiff to renew a cause of action that was barred in a prior suit, a district court should consider several factors, including whether (i) the denial of the motion constituted a judgment on the merits rather than one based on administrative concerns related to efficient docket management or efficient presentation of the case at trial; (ii) the plaintiff passed up an opportunity to appeal the denial; (iii) the new claim arose prior to the filing of the first action; (iv) the plaintiff acted diligently to discover the potential claim before filing the first complaint or in seeking to amend it; and (v) the plaintiff was a pro se litigant.

As applied to this case, those factors favor dismissal of Trireme’s claims.

Accordingly, because the new suit was barred by the old judgment, we AFFIRM the judgment of the district court.

AFFIRMED.

AMY MASON SAHARIA (Jonathan A.

Spratley, Williams & Connolly LLP, Washington, D.C.; John F. Baughman, Nathaniel E. Marmon, Baughman Kroup Bosse PLLC, New York, NY, on the brief), Williams & Connolly, Washington, D.C., for Plaintiffs-Appellants.

SUSAN K. LEADER (Sara N. Bricker, Paul C.

Gross, Paul Hastings LLP, New York, NY;

Eli B. Richlin, Wilson Sonsini Goodrich & Rosati, P.C., New York, NY, on the brief), Paul Hastings LLP, Century City, CA, for Defendants-Appellees.

RICHARD J. SULLIVAN, Circuit Judge:

Plaintiffs Trireme Energy Holdings, Inc. and Trireme Energy Development, LLC (collectively “Trireme”) appeal from a judgment of the United States District Court for the Southern District of New York (Rochon, J.) dismissing their breach- of-contract claim against RWE Renewables Americas, LLC and RWE Renewables Services, LLC (collectively, “RWE”) – which are subsidiaries of German energy behemoth RWE AG. In an earlier suit against the same Defendants, Trireme moved unsuccessfully to amend the complaint to allege the same claim as is the subject of this appeal. Pointing to that prior ruling, the district court concluded that the present action was barred by the doctrine of res judicata. That is the ruling from which Trireme now appeals.

In determining whether to preclude a successive claim for the same relief, district courts should consider several factors, including whether (i) the denial of the first motion to amend involved substantive issues, rather than administrative concerns related to efficient docket management; (ii) the plaintiff passed up an

opportunity to appeal the denial in the first action; (iii) the new claim arose prior to the filing of the first action; (iv) the plaintiff acted diligently to discover the potential claim before filing the first complaint or in seeking to amend it, or the defendant obstructed the plaintiff’s access to information revealing the existence of the claim; and (v) the plaintiff was a pro se litigant.

Having considered these factors, we conclude that the district court was justified in dismissing Trireme’s new action on grounds of res judicata. Trireme is a sophisticated and well-represented entity. And the conduct of which it complains occurred prior to the filing of the initial complaint. Finally, the district court found in the first action that Trireme did not act diligently, taking advantage of information available in public filings, to learn the facts supporting the claim. If Trireme believed the district court had erred or abused its discretion in making that finding, it should have appealed from that ruling, but it failed to do so. As a result, res judicata bars Trireme’s new assertion of its claim. We accordingly affirm the judgment of the district court.

I. BACKGROUND

This case arises from a complex series of deals, swaps, and transfers between sophisticated parties in the renewable energy industry. In essence, Trireme alleges

in the present complaint that Defendants breached their contract with Trireme by redistributing within their corporate family assets that Trireme had originally transferred to them.

A. The Merger Agreement In December 2017, Trireme and Innogy Renewables US, LLC (“IRUS”)

entered into a “Merger Agreement.” IRUS – which had only a handful of employees – was the new U.S. subsidiary of a German renewable energy company called Innogy SE, whose majority shareholder was, in turn, RWE AG – “the largest German [energy] utility.” App’x at 1733. The Merger Agreement helped IRUS, Innogy, and RWE AG access the U.S. renewable-energy market; under the Agreement’s terms, Trireme sold IRUS its “Development Companies,” which held valuable real estate assets connected to nascent wind and solar projects in the United States. Sp. App’x 45, 49. In return, Trireme immediately received $50 million – with a potential $112.2 million in various future “Payment Milestone Amounts” to follow if and when IRUS reached certain points in the successful development of the inchoate energy projects. App’x at 2876.

To protect their rights connected to these payouts, both parties bargained for concessions, which they memorialized in section 7.6 of the Merger Agreement.

For its part, IRUS successfully obtained language in section 7.6(a) requiring it to use only “commercially reasonable efforts” while leaving “the details and manner of such development efforts . . . within [its] sole discretion.” Id. at 2906. Meanwhile, Trireme negotiated for a clause in section 7.6(b) compelling IRUS to provide at-least-quarterly reports on the status of the projects. Id. Finally, Trireme secured the provision at issue here – section 7.6(c) – which prohibited IRUS from “sell[ing], assign[ing], transfer[ing], or otherwise dispos[ing]” of any of the renewable energy assets without Trireme’s consent. Id. Trireme also received a parent-company guarantee from Innogy because it was concerned that IRUS was “more or less a shell company” that would need another entity to “stand[] behind [its] obligations.” Sp. App’x at 50 (internal quotation marks omitted).

B. The Asset Swap and Internal Re-Organization In March 2018, RWE AG announced that it would be entering a complex transaction (the “Asset Swap”) with another major German energy utility company, E.ON SE. In a nutshell, E.ON agreed to hand over its renewable energy business in exchange for RWE AG’s stake in Innogy SE – IRUS’s direct parent. RWE AG, would, however, retain some of Innogy’s assets, including IRUS.

Trireme was aware that this Asset Swap – which concluded on June 30, 2020 – was taking place.

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