97 Fed. Cl. 345
Fed. Cl.2011Background
- This case involves defendant's partial reconsideration motion and Osage Nation's response concerning damages for breach of fiduciary duty related to Osage oil revenues.
- The court previously resolved three factual disputes (Koch data issue, gravity adjustment issue, interest credit issue) in its December 29, 2010 Opinion.
- Defendant seeks reconsideration of the gravity-adjustment ruling: whether Reineke’s use of Joint Database gravity-adjustment scales for Koch transactions is reasonable.
- Koch data (Top 50 Lists and Koch 40-degree prices) and the Joint Database scales drive how damages will be calculated.
- The court previously limited the Koch data to Koch Top 50 List-based damages but allowed the Koch 40-degree prices to be used for Koch transactions regardless of the Top 50 method; the court now revisits that decision under RCFC 59/60 standards.
- The court sets new deadlines for damages calculations and invites further court involvement to achieve a just, speedy, inexpensive resolution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether reconsideration is warranted under RCFC 59/60 and manifest injustice standards. | Osage Nation argues no manifest injustice; limits on Koch data were proper. | Defendant contends reconsideration is needed due to manifest injustice from the prior limitation. | Granted reconsideration to allow Koch 40-degree prices regardless of Top 50 calculations. |
| Whether the Koch 40-degree prices may be used to calculate damages for Koch transactions. | Prices from Joint Database should govern all gravity-adjusted damages. | Koch 40-degree prices are more accurate and should be used for Koch transactions. | Yes; Koch 40-degree prices may be used for Koch transactions; damages otherwise use Joint Database gravity-adjusted prices. |
| Whether the court’s prior limitation on applying Koch data to Koch Top 50 List damages remained valid. | Limitation was incorrect and skewed damages against Osage Nation. | Limitation preserved consistent method and evidence use. | Parties shall compute damages using Koch 40-degree prices for Koch Top 50 transactions and Joint Database gravity-adjusted prices for others. |
| What are the procedural deadlines for updated damages calculations after reconsideration? | Timely submission of updated calculations is required. | Disagreement and detailed statements should govern subsequent submissions. | New calculations due by Feb 11, 2011; if disputes, detailed statements by Feb 14; updated calculations due Feb 18. |
| Should the court continue to supervise or assist in the damages process to expedite resolution? | Court involvement should be sustained to ensure accuracy and efficiency. | Court involvement should be limited to necessary adjustments. | Court encourages ongoing court involvement to secure just, speedy, inexpensive determination. |
Key Cases Cited
- Osage II, 72 Fed.Cl. 629 (2006) (US violated trustee duties by failing to collect and deposit funds and data under Osage II regime)
- Osage IV, 93 Fed.Cl. 1 (2010) (court rejected unreasonable inferences about Koch data; allowed deposition and data access)
- Yuba Natural Res., Inc. v. United States, 904 F.2d 1577 (Fed.Cir.1990) (discretion in granting reconsideration and exceptional care required)
- Bannum, Inc. v. United States, 59 Fed.Cl. 241 (2003) (reconsideration standards; need to go beyond previously litigated points)
- Henderson Cnty. Drainage Dist. No. 3 v. United States, 55 Fed.Cl. 334 (2003) (exacting standard for reconsideration and manifest injustice)
- Matthews v. United States, 73 Fed.Cl. 524 (2006) (factors for consideration in reconsideration motions)
- Griffin v. United States, 96 Fed.Cl. 1 (2010) (manifest injustice standard in reconsideration)