{"id":27307,"date":"2025-10-28T18:30:09","date_gmt":"2025-10-28T18:30:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/27307\/"},"modified":"2025-10-28T18:30:09","modified_gmt":"2025-10-28T18:30:09","slug":"oaklands-tortious-interference-bankrupted-a-coal-company-now-the-city-could-owe-millions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/27307\/","title":{"rendered":"Oakland’s ‘tortious interference’ bankrupted a coal company. Now the city could owe millions."},"content":{"rendered":"

Oakland is on the hook for potentially hundreds of millions of dollars in damages after a federal bankruptcy court judge ruled<\/a> Monday that the city \u201ctortiously interfered\u201d with a developer\u2019s efforts to build a coal terminal.\u00a0<\/p>\n

Insight Terminal Solutions subleased property from another company, Oakland Bulk and Oversized Terminal, on Oakland\u2019s waterfront years ago hoping to operate a marine export terminal that would ship coal to overseas markets. But under pressure<\/a> from city residents and activists opposed to turning Oakland into a major exporter of fossil fuels, city officials took numerous steps to prevent Oakland Bulk and Oversized Terminal and Insight Terminal Solutions from constructing the terminal, federal bankruptcy court Judge Joan A. Lloyd wrote in a decision published yesterday.<\/p>\n

Lloyd found that Oakland is liable because it \u201cprevented [Insight] from securing financing, developing the Terminal, and realizing the value of the sublease, thereby forcing [Insight] into bankruptcy and causing damages.\u201d\u00a0<\/p>\n

Lloyd noted that despite rulings against the city in multiple courts, officials continued \u201cwith their pattern of interference,\u201d citing Mayor Barbara Lee\u2019s promise to \u201cdo everything in her power to stop development of the Terminal.\u201d During her political campaign earlier this year, Lee signed a pledge<\/a> to not accept money from coal interests and vowing to oppose the creation of a coal terminal in West Oakland. City Attorney Ryan Richardson also signed a pledge<\/a> to not take money from coal interests, but also told activists he would follow whatever directive the City Council and city administration gave him regarding legal matters.\u00a0<\/p>\n

What exactly Oakland will have to pay will be determined at a future hearing, according to the latest ruling. But the judgment could be staggering: in previous court filings, Insight has argued that it is owed damages worth $673,658,000. In a deposition, the city\u2019s own expert conceded that damages could be at least $230 million.\u00a0<\/p>\n

\u201cThis disparity leaves the court with an issue of fact as to the appropriate amount of damages due Plaintiff,\u201d Lloyd wrote in the ruling, which partially granted Insight\u2019s motion for summary judgment. Lloyd denied the city\u2019s summary judgment motion. \u00a0<\/p>\n

City Attorney Ryan Richardson did not immediately respond to an interview request. <\/p>\n

Attorneys for Insight Terminal Solutions did not immediately respond to an inquiry.\u00a0<\/p>\n

Nearly a decade ago, Insight and Oakland Bulk and Oversized Terminal crafted a plan to build a terminal for exporting commodities, including coal, from the Oakland waterfront. But city officials fought this proposal, triggering a series of legal battles in state and federal court that stopped the project from moving forward.\u00a0<\/p>\n

In the interim, Insight Terminal Solutions was unable to pay back loans and was forced to file for bankruptcy in Kentucky, where the company is located. Insight fell under the control of one of its creditors, Autumn Wind Lending. As part of its bankruptcy restructuring plan, Autumn Wind Lending was to take control of Insight\u2019s lease to the Oakland property which is on the old Army Base. The city of Oakland objected to this plan.\u00a0<\/p>\n

Last year, Insight filed a complaint in the bankruptcy court that sought to hold Oakland accountable for interfering with its contract.\u00a0<\/p>\n

The ruling in the bankruptcy court marks yet another legal defeat for Oakland. In September, the city exhausted its last attempt<\/a> to appeal a state court ruling that found in favor of Oakland Bulk and Oversized Terminal. As a result of that ruling, the developer will be able to keep and extend its lease for a plot of city-owned land to restart the terminal project.\u00a0<\/p>\n

Tagami, the developer behind OBOT, told The Oaklandside he had no comment to make about Monday\u2019s ruling.<\/p>\n

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