Botched Mediation Warrants Sanctions, Alma Tells 6th Circ.

Law360, New York (October 22, 2013, 5:44 PM EDT) -- The liquidating trustee for bankrupt Alma Energy LLC urged the Sixth Circuit on Monday to uphold sanctions against two companies that allegedly breached coal purchase agreements with Alma, accusing them of gross misconduct during mediation.

A $30,052 sanction against Kentucky-based energy investors Banner Industries of N.E. Inc., Pikeville Energy Group LLC and Pikeville principal Gary J. Richard should be upheld for gross misconduct during mediation proceedings, Alma's Chapter 7 trustee Phaedra Spradlin told the appeals court. Spradlin ripped the companies' arguments for a reversal, saying the federal...
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