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Bay Shore Power Company v. Oxbow Energy Solutions LLC
3:17-cv-01982
N.D. Ohio
Jan 2, 2020
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Background:

  • Bay Shore and Oxbow entered a long-term Limestone Supply Agreement (LSA) in 1998; disputes over the LSA arose in 2012 and were submitted to arbitration under Section 15.6.
  • The arbitration panel considered requests for attorneys’ fees but found ambiguous language in the LSA—specifically subsections (b)(iv) and (b)(v)—regarding whether arbitration fees could be awarded.
  • Subsection (b)(iv) states parties shall bear their own attorneys’ fees at arbitration; subsection (b)(v) states the prevailing party shall be reimbursed for attorneys’ fees.
  • The arbitration panel concluded it lacked jurisdiction to award attorneys’ fees, awarded Bay Shore $4,868,326.47 plus interest on the merits, and Bay Shore then sought confirmation of the award and arbitration-related attorneys’ fees in federal court.
  • Parties stipulated payment of the award amount and interest; the only remaining issue was Bay Shore’s claim for arbitration-related attorneys’ fees under the LSA.
  • The district court held the two fee provisions were irreconcilable, found no meeting of the minds on arbitration fee-shifting, and granted summary judgment to Oxbow (denying Bay Shore’s motion).

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether the LSA requires Oxbow to reimburse Bay Shore for arbitration-related attorneys’ fees (Bay Shore) Subsection (b)(v) is a specific provision that shifts attorneys’ fees to the non-prevailing party; (b)(iv) only limits the arbitrator’s power to award fees (Oxbow) Subsection (b)(iv) plainly states attorneys’ fees "shall be borne by each party individually;" (b)(iv) and (b)(v) conflict and cannot be reconciled, so no contractual fee-shifting for arbitration The court: provisions are irreconcilable; no meeting of the minds on arbitration fee-shifting; Bay Shore not entitled to arbitration-related attorneys’ fees; D’s SJ granted, P’s denied

Key Cases Cited

  • Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (establishes summary-judgment standard for genuine dispute)
  • White v. Baxter Healthcare Corp., 533 F.3d 381 (view evidence in light most favorable to nonmovant on summary judgment)
  • Rose v. State Farm Fire & Cas. Co., 766 F.3d 532 (summary judgment and drawing reasonable inferences for nonmovant)
  • Alexander v. Buckeye Pipe Line Co., 374 N.E.2d 146 (Ohio law governs contract interpretation to effect parties’ intent)
  • Skivolocki v. East Ohio Gas Co., 313 N.E.2d 374 (contractual intent is evidenced by language of the contract)
  • Kostelnik v. Helper, 770 N.E.2d 58 (meeting of the minds is required to enforce a contract)
  • Marusa v. Erie Ins. Co., 991 N.E.2d 232 (specific contract provision controls over a general one when provisions conflict)
  • Garofoli v. Whiskey Island Partners, Ltd., 25 N.E.3d 400 (illustrates specific-versus-general provision analysis)
  • German Fire Ins. Co. v. Roost, 45 N.E. 1097 (special provision will override general one only when they cannot be harmonized)
Read the full case

Case Details

Case Name: Bay Shore Power Company v. Oxbow Energy Solutions LLC
Court Name: District Court, N.D. Ohio
Date Published: Jan 2, 2020
Citation: 3:17-cv-01982
Docket Number: 3:17-cv-01982
Court Abbreviation: N.D. Ohio