US Coal Corporation v. Dinning, B.

2019 Pa. Super. 326
Superior Court of Pennsylvania·Decided October 29, 2019·No. 1021 WDA 2018·Published·Cited by 1 cases

Opinion

2019 PA Super 326

US COAL CORPORATION, AND GRATIAN IN THE SUPERIOR COURT YATSEVITCH, III OF PENNSYLVANIA

Appellants

v.

BRIAN RAY DINNING, STEPHEN DINNING, DAVID LYNN DINNING, D.L. DINNING CO., LLC, FBR CAPITAL MARKETS & CO., FBR & CO., AK COAL RESOURCES, INC., FORMERLY KNOWN AS SOLAR FUEL COMPANY, INC., AND AK STEEL CORPORATION

Appellees No. 1021 WDA 2018

Appeal from the Order Entered June 20, 2018 In the Court of Common Pleas of Somerset County Civil Division at No: 587 Civil 2013

BEFORE: PANELLA, P.J., STABILE, and McLAUGHLIN, JJ. OPINION BY STABILE, J.: FILED OCTOBER 29, 2019 Appellants US Coal Corporation (“US Coal”) and Gratian Yatsevitch, III (“Yatsevitch”), appeal from the June 20, 2018 order awarding sanctions and rendering final the trial court’s previous grant of summary judgment in favor of Appellees, Brian Ray Dinning (“Brian”), Stephen Dinning (“Stephen”), David Lynn Dinning (“David”), D.L. Dinning Co., LLC (“D.L. Dinning”, and, collectively with David and Stephen and exclusive of Brian, the “Dinning

Parties”), FBR Capital Markets & Co. and FBR & Co. (collectively “FBR”),1 AK Coal Resources (“AK Coal”), Inc., f/k/a Solar Fuel Company, Inc. (“Solar Fuel”), and AK Steel Corporation (“AK Steel,” and, collectively with AK Coal and Solar Fuel Company, “AK”). We affirm.

Appellants filed their complaint on October 17, 2013, alleging various causes of action, including breach of contract, promissory estoppel, unjust enrichment, fraud, and negligent misrepresentation. On October 4, 2017, the trial court granted the summary judgment motions of all Appellees on Appellants’ causes of action, and found in favor of AK on an indemnity counterclaim. The October 4, 2017 order reserved ruling on the amount of AK’s damages. On February 20, 2018, AK filed a petition for attorneys’ fees. On March 27, 2018, the trial court conducted a hearing on attorneys’ fees and a motion for sanctions filed by the Dinning Parties. On June 4, 2018, the trial court entered a judgment of $152,770.13 in favor of AK. On June 20, 2018, the trial court awarded $7,222.32 in sanctions to the Dinning Parties. The trial court designated the June 20, 2018 order as “a final order in this matter.” Order, 6/20/18. Appellants filed their notice of appeal on July 7, 2018.

The complaint arises out of a business transaction whereby AK acquired a company then known as Solar Fuel. Brian and David owned Solar Fuel and wished to sell it. In pursuit of that goal, in October of 2010, Brian contacted

1 FBR is not participating in this appeal.

Yatsevitch, an investment banker. Yatsevitch in turn contacted FBR, an investment-banking firm. FBR advised Yatsevitch that its client, AK, had an interest in buying Solar Fuel. AK and US Coal2 considered a joint venture whereby the companies would acquire Solar Fuel. In August of 2011, Brian informed Yatsevitch that AK would not pursue the joint venture with US Coal. Subsequently, in October of 2011, AK agreed to acquire Solar Fuel without the involvement of Yatsevitch or US Coal, for 36 million dollars (the “Solar Fuel Sale”). On October 3, 2011, prior to consummating the Solar Fuel Sale, US Coal executed a release (the “Release”). Brian, serving as in-house counsel for US Coal, executed the Release on behalf of US Coal at the direction of Yatsevitch. Yatsevitch Deposition, 3/24/15, at 182. The Release was central to the trial court’s grant of summary judgment in favor of AK. The trial court also found no enforceable oral agreement regarding the right of Yatsevitch and/or US Coal to receive compensation from the Solar Fuel Sale.

Before we address the merits of Appellants’ arguments, we must consider whether we have jurisdiction over anything other than the order awarding sanctions to the Dinning Parties. Appellees note that the October 4, 2017 order disposed of all claims and parties. The only remaining issue from the parties’ pleadings after October 4, 2017 was the amount of AK’s award,

2 Yatsevitch incorporated US Coal under the laws of Wyoming. US Coal’s articles of incorporation, filed July 15, 2011, appear in the record as Exhibit 7 of the Appendix to AK’s brief in support of its summary judgment motion.

which the June 4, 2018 order resolved. The only outstanding issue after June 4, 2018 was the Dinning Parties’ motion for sanctions, which the trial court resolved on June 20, 2018. Appellants filed their notice of appeal on July 7, 2018, within the 30-day appeal period of the award of sanctions to the Dinning Parties but untimely as to all other orders. Thus, unless the June 20, 2018 order was the final appealable order in this matter, our jurisdiction is limited to a review of the award of sanctions granted in that order.

Appellees cite Old Forge School Dist. v. Highmark, Inc., 924 A.2d 1205 (Pa. 2007), in which our Supreme Court held that a petition for sanctions and/or attorney fees was a separate matter over which the trial court retained jurisdiction after the parties appealed the final order on the merits. In that case, the Commonwealth Court, exercising original jurisdiction, entered an order sustaining preliminary objections and dismissing a complaint on February 7, 2006. Id. at 1206. The defendant filed an application for attorney’s fees, pursuant to 42 Pa.C.S.A. §§ 2503(7) and 2503(9)3 ten days later, on February 17, 2006. Id. at 1209. The plaintiff appealed the dismissal of the complaint without awaiting resolution of the fee application. Id. The Commonwealth Court entered an order granting the defendant’s application for fees while the merits appeal was pending. Id. On appeal from the order

3 Section 2503 of the Judicial Code governs the right of litigants to receive counsel fees. 42 Pa.C.S.A. § 2503. Section 2503 is not at issue here.

granting the fee application the plaintiff, citing Pa.R.A.P. 1701(a),4 argued the Commonwealth Court lacked jurisdiction to award fees, given the prior pending appeal on the merits. Id. at 1210. The Supreme Court disagreed, holding that the order dismissing preliminary objections was final and appealable, and that the fee petition was a separate matter for purposes of Rule 1701. Id. at 1211. In general, therefore, a fee petition is “connected to, but separate from, the underlying action.” Id.5 Pursuant to Old Forge, the June 4, 2018 order was final and appealable, as it disposed of AK’s counterclaim, the only claim remaining from the parties’

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US Coal Corporation v. Dinning, B.
2019 Pa. Super. 326 (Superior Court of Pennsylvania, 2019)