Federal judge dismisses $1 billion lawsuit against Oakland over coal terminal

According to Hoodline: U.S. District Judge Benjamin Beaton dismissed a $1 billion lawsuit against Oakland without prejudice, ruling that the case did not belong in his Kentucky courtroom. The lawsuit, filed by Insight Terminal Solutions, claimed Oakland interfered with its lease to develop a coal export terminal at the former Oakland Army Base. The company had argued that Kentucky was the proper venue because it filed for bankruptcy there in 2019. Bankruptcy Judge Joan Lloyd had previously ruled that Oakland was responsible for bankrupting the company, with potential liability between $230 million and $654 million. Judge Beaton invoked a federal abstention law, favoring state courts in bankruptcy-related proceedings, and described Insight Terminal Solutions' use of a bankruptcy adversary proceeding as potentially forum shopping. The company may appeal the ruling or refile its case in California state court.