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