Michael S. Branham v. Commonwealth of Kentucky, Energy and Environment Cabinet ( 2023 )

RENDERED: JUNE 30, 2023; 10:00 A.M.
NOT TO BE PUBLISHED
Commonwealth of Kentucky
Court of Appeals
NO. 2022-CA-0383-MR
MICHAEL S. BRANHAM AND
METELECTRIC ENERGY, LLC APPELLANTS
APPEAL FROM FRANKLIN CIRCUIT COURT
v. HONORABLE PHILLIP J. SHEPHERD, JUDGE
ACTION NO. 21-CI-00671
COMMONWEALTH OF KENTUCKY,
ENERGY AND ENVIRONMENT
CABINET APPELLEE
OPINION
AFFIRMING
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BEFORE: ECKERLE, KAREM, AND MCNEILL, JUDGES.
MCNEILL, JUDGE: This case concerns the breach of an agreement about mining
operations. Appellants are Michael S. Branham (Branham), and MetElectric
Energy, LLC (MetElectric). Appellee is the Commonwealth of Kentucky, Energy
and Environment Cabinet (Cabinet). MetElectric is a surface coal mining
permittee located in Floyd County, Kentucky. Branham is its sole member-
manager.
Due to failure to follow Kentucky’s rules and regulations governing
mining operations, the Cabinet cited and fined Appellants for various violations,
including coal mining reclamation requirements. Reclamation “means the
reconditioning of the area affected by surface coal mining operations under a plan
approved by the cabinet[.]” KRS1 350.010(12). The parties eventually entered
into a twenty-nine page amended agreed order in September of 2019 (Agreed
Order). The signatories to the Agreed Order include the present parties and the
reclamation bond surety, Lexon Insurance Company.
Appellants breached the Agreed Order for failure to comply with its
requirement to pay reduced monthly civil penalty installments of $25,000. After
receiving notice of their breach, Appellants failed to cure within a fourteen-day
period provided by the Agreed Order. As a result, the Cabinet filed suit in Franklin
Circuit Court. The court granted summary judgment in favor of Cabinet, thereby
enforcing the terms of the Agreed Order, including the pecuniary penalties for
breach. In addition to finding that Appellants failed to make the necessary
payments pursuant to the Agreed Order, the court also concluded that “there is no
dispute that the amount of highwall reclaimed falls short of the amount that is
1
Kentucky Revised Statutes.
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required . . . .” Appellants filed a motion to alter, amend, or vacate that order,
which was denied.2 Appellants now appeal the summary judgment as a matter of
right. For the following reasons, we affirm.
STANDARD OF REVIEW
A motion for summary judgment should be granted “if the pleadings,
depositions, answers to interrogatories, stipulations, and admissions on file,
together with the affidavits, if any, show that there is no genuine issue as to any
material fact and that the moving party is entitled to a judgment as a matter of
law.” CR3 56.03. The Kentucky Supreme Court further explained this summary
judgment standard in Steelvest, Inc. v. Scansteel Service Center, Inc.:
While it has been recognized that summary judgment is
designed to expedite the disposition of cases and avoid
unnecessary trials when no genuine issues of material
fact are raised, . . . this Court has also repeatedly
admonished that the rule is to be cautiously applied. The
record must be viewed in a light most favorable to the
party opposing the motion for summary judgment and all
doubts are to be resolved in his favor. Even though a
trial court may believe the party opposing the motion
may not succeed at trial, it should not render a summary
judgment if there is any issue of material fact. The trial
judge must examine the evidence, not to decide any issue
of fact, but to discover if a real issue exists. It clearly is
2
In its order denying post-judgment relief, the court indicated that Appellants’ counsel “made a
vigorous argument that Mr. Branham acted in good faith . . . .” The court also indicated that it is
“mindful that this dispute dates back many years, and the Cabinet has showed flexibility and
leniency many times before, which resulted in the present Agreed Order. While the result may
be harsh, the Cabinet is within its rights to enforce the Agreed Order.”
3
Kentucky Rules of Civil Procedure.
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not the purpose of the summary judgment rule, as we
have often declared, to cut litigants off from their right of
trial if they have issues to try.
807 S.W.2d 476, 480 (Ky. 1991) (citations omitted). “Because no factual issues
are involved and only a legal issue is before the court on the motion for summary
judgment, we do not defer to the trial court and our review is de novo.” Univ. of
Louisville v. Sharp, 416 S.W.3d 313, 315 (Ky. App. 2013) (citation omitted). With
this standard in mind, we return to facts and issues in the present case.
ANALYSIS
Appellants’ sole argument on appeal is that the circuit court erred in
granting the Cabinet’s motion for summary judgment because numerous genuine
issues of material facts exist. They specifically assert that MetElectric sent the
Cabinet a “COVID 19 Application for Temporary Regulatory Flexibility,”
requesting an extension of the curative period. The reasoning behind this request
is unspecified, and there is no indication that the appropriate department received
the form. What is clear, however, is that pursuant to the Agreed Order:
[The] fourteen (14) day period may be extended by the
Cabinet if MetElectric is actively pursuing a cure for the
breach and requests, in writing, additional time.
(First emphasis added.) Therefore, the circumstances surrounding Appellants’
alleged request for an extension are of limited relevance here. The Agreed Order is
not an instrument of equity, and any decisions concerning extensions of the
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curative period are the discretion of the Cabinet. Furthermore, the Agreed Order
was a product of previous written agreements between the parties. And the parties
here involve sophisticated individuals and entities, presumably well-versed in
contractual obligations. In any event, Appellants have not presented any genuine
issue of material fact that would require reversal.
CONCLUSION
For the foregoing reasons, we AFFIRM the Franklin Circuit Court’s
order entered on January 24, 2022.
ALL CONCUR.
BRIEFS FOR APPELLANTS: BRIEF FOR APPELLEE:
Billy R. Shelton Lance C. Huffman
Lexington, Kentucky Leilani Martin
Frankfort, Kentucky
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