Page 1 - COMPLAINT (BREACH OF CONTRACT; GOODS 

SOLD AND DELIVERED)

SCHWABE, WILLIAMSON & WYATT, P.C.

Attorneys at Law

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Fax: 541.330.1153

PDX\110176\204360\CGR\16427938.2

Craig G. Russillo, OSB #973875

Email: crussillo@schwabe.com

SCHWABE, WILLIAMSON & WYATT, P.C.

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Facsimile: 541.330.1153

Attorney for Plaintiff, South Coast Lumber Co.

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

MEDFORD DIVISION

SOUTH COAST LUMBER CO., an 

Oregon corporation,

Plaintiff,

vs.

BLUE LAKE POWER, LLC, a California 

limited liability company,

Defendant.

No. __________________________

COMPLAINT (Breach of Contract; Goods 

Sold and Delivered; Quantum Meruit)

JURY DEMAND

Plaintiff South Coast Lumber Co. (“South Coast”), hereby alleges as follows:

FIRST CLAIM FOR RELIEF

(Breach of Contract)

1.

South Coast is an Oregon corporation which at all material times was authorized to 

conduct business within the State of Oregon. South Coast’s principal place of business is in 

Brookings, Oregon. 

Case 1:15-cv-01651-CL Document 1 Filed 09/01/15 Page 1 of 9
Page 2 - COMPLAINT (BREACH OF CONTRACT; GOODS 

SOLD AND DELIVERED)

SCHWABE, WILLIAMSON & WYATT, P.C.

Attorneys at Law

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Fax: 541.330.1153

PDX\110176\204360\CGR\16427938.2

2.

Defendant Blue Lake Power, LLC (“BLP”), is a California limited liability company, 

with its principal place of business in Redding, California. 

3.

This court has original jurisdiction to hear this matter under 28 U.S.C. § 1332, because 

South Coast and BLP are citizens of different states and the amount in controversy exceeds 

$75,000.00. Venue is proper under 28 U.S.C. § 1391(b)(2), because a substantial part of the 

events or omissions giving rise to South Coast’s claims in this action occurred in the District of 

Oregon.

4.

On or about March 13, 2014, South Coast and BLP executed a Fuel Purchase Agreement 

(the “Agreement”). A true copy of the Agreement is attached to this complaint and incorporated 

herein as Exhibit 1. 

5.

Under the Agreement, South Coast agreed to provide and BLP agreed to purchase certain 

wood fiber, referred to in the Agreement as “boiler ready fuel.” 

6.

Upon information and belief, BLP intended to use the boiler ready fuel to produce 

electricity, which it would then sell to retail and commercial customers. 

7.

Pricing for the boiler ready fuel was based off the weight, referred to in the Agreement as 

the “bone dry ton” or “BDT.” A BDT is defined in the Agreement as 2,000 pounds of wood fuel 

with 0% moisture content. 

8.

Under the Agreement, BLP agreed to pay South Coast $43.00 per BDT.

Case 1:15-cv-01651-CL Document 1 Filed 09/01/15 Page 2 of 9
Page 3 - COMPLAINT (BREACH OF CONTRACT; GOODS 

SOLD AND DELIVERED)

SCHWABE, WILLIAMSON & WYATT, P.C.

Attorneys at Law

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Fax: 541.330.1153

PDX\110176\204360\CGR\16427938.2

9.

Between the execution of the Agreement through May of 2015, South Coast delivered to 

BLP 289 loads of boiler ready fuel, which loads had an aggregate BDT of 3,654.43. At $43.00

per BDT, the amount owed for the boiler ready fuel delivered is $157,140.49. 

10.

BLP has failed and refused to pay for the boiler ready fuel delivered by South Coast. 

11.

On July 14, 2015, South Coast, through counsel, sent BLP a letter demanding payment of 

the $157,140.49. A copy of the July 14 letter is attached to this complaint and incorporated 

herein as Exhibit 2. 

12.

Despite receipt of the letter, BLP has failed to pay South Coast the $157,140.49 

demanded. 

13.

South Coast has performed all conditions precedent under the Agreement, or such 

conditions have been excused. 

14.

BLP is in default under the Agreement by failing to pay South Coast the $157,140.49 for 

boiler ready fuel delivered by South Coast to BLP. 

15.

As a direct and proximate result of BLP’s default under the Agreement, South Coast is 

entitled to a judgment and money award against BLP in the principal amount of $157,140.49, 

together with interest at the statutory rate of 9% per annum, accruing from July 14, 2015, until 

fully paid. 

Case 1:15-cv-01651-CL Document 1 Filed 09/01/15 Page 3 of 9
Page 4 - COMPLAINT (BREACH OF CONTRACT; GOODS 

SOLD AND DELIVERED)

SCHWABE, WILLIAMSON & WYATT, P.C.

Attorneys at Law

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Fax: 541.330.1153

PDX\110176\204360\CGR\16427938.2

SECOND CLAIM FOR RELIEF

(Goods Sold and Delivered)

16.

South Coast realleges the above paragraphs. 

17.

At BLP’s specific request, South Coast delivered to BLP 3,654.43 BDT of boiler ready 

fuel. The reasonable value for the boiler ready fuel is $157,140.49. BLP has failed to pay the 

reasonable value for the boiler ready fuel, despite demand from South Coast. 

18.

As a result of BLP’s failure to pay the reasonable value for the boiler ready fuel delivered 

by South Coast, South Coast is entitled to a judgment and money award against BLP in the in the 

principal amount of $157,140.49, together with interest at the statutory rate of 9% per annum, 

accruing from July 14, 2015, until fully paid. 

THIRD CLAIM FOR RELIEF

(Unjust Enrichment)

19.

South Coast realleges the above paragraphs.

20.

Unless BLP is ordered to pay $157,140.49, together with interest at the statutory rate of 

9% per annum, accruing from July 14, 2015, until fully paid, BLP will be unjustly enriched to 

South Coast’s detriment. Accordingly, South Coast is entitled to a judgment and money award 

against BLP in the amounts set forth herein. 

WHEREFORE, South Coast requests the following relief:

1. On its First, Second, and Third Claims for Relief, a judgment and money award 

against BLP in the principal amount of $157,140.49, together with interest at the statutory rate of 

9% per annum, accruing from July 14, 2015, until fully paid;

Case 1:15-cv-01651-CL Document 1 Filed 09/01/15 Page 4 of 9
Page 5 - COMPLAINT (BREACH OF CONTRACT; GOODS 

SOLD AND DELIVERED)

SCHWABE, WILLIAMSON & WYATT, P.C.

Attorneys at Law

360 SW Bond Street, Suite 500

Bend, OR 97702

Telephone: 541.749.4044

Fax: 541.330.1153

PDX\110176\204360\CGR\16427938.2

2. For South Coast’s costs and disbursements incurred herein;

3. And for such further and additional relief as the court deems just and equitable. 

JURY DEMAND

21.

Pursuant to FED. R. CIV. P. 38(b), Plaintiff demands a trial by jury of all issues 

presented in this complaint which are triable by jury.

Dated this 1st day of September, 2015.

Respectfully submitted,

SCHWABE, WILLIAMSON & WYATT, P.C.

By: /s/ Craig G. Russillo

Craig G. Russillo, OSB #973875

Telephone: 541.749.4044

Facsimile: 541.330.1153

Of Attorneys for Plaintiff South Coast 

Lumber Co., an Oregon corporation

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Exhibit 1 

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Exhibit 1 

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Exhibit 2 

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Exhibit 2 

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