Opinion ID: 8414534
Heading Depth: 2
Heading Rank: 2

Heading: Allegations in the Amended Complaint

Text: As this is an appeal taken from a decision on a motion to dismiss, the facts are largely drawn from the amended complaint and are accepted as true for the purposes of this appeal. See Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Beginning in the mid-1990s, appellants sold pig iron to a Swiss company called Primetrade AG. Some portion of that pig iron was then supplied to Primetrade USA which, appellants allege, together with Pri-metrade AG, “operated as one company” at all relevant times. App’x at 790 ¶ 30. 3 On or about February 28, 2004, a bulk carrier transporting cargo for Primetrade AG exploded off the coast of Colombia, causing the death of the master and five crew members. In April 2005, Primetrade AG transferred its assets, including its agreements with appellants, to Steel Base Trade, AG (“SBT”), a Swiss company, which “began operating with the same officers and directors as Primetrade AG and at the same offices.” App’x at 790 ¶ 32. The transfer to SBT was apparently due to the fact that Primetrade AG garnered negative publicity following litigation arising out of the ship explosion. [JA 41] Silvio Moreira, a representative of Primetrade AG in Brazil, informed two of the appellants that “the business would be the same, just under a different name.” App’x at 790 ¶ 32. On or about October 5, 2007, AMCI International GmbH (“AMCI International”), a company owned and controlled by the individual appellees, purchased SBT and its U.S. subsidiary, Primetrade USA. In 2008, appellants and SBT entered into ten separate contracts for the sale and purchase of 103,500 metric tons of pig iron to SBT for more than $76 million (the “Contracts”). Only appellants and SBT are signatories of the Contracts; none of the appellees are signatories. Appellants claim four of the ten Contracts provided for delivery of pig iron in the United States. The delivery dates were set from April 2008 through December 1, 2008. Each of the Contracts contained the following identical arbitration provision: All disputes arising in connection with the present contract shall be finally settled under the rules of Conciliation and Arbitration of the International Chamber of Commerce, Paris, by one or more arbiter, appointed in accordance with said rules. App’x at 72, 78, 84, 90, 96, 102, 109, 116, 123, 130, 792. The Contracts did not provide that they were entered into on behalf of any other party or specify that they are binding on successors-in-interest or assigns. Initially, in accordance with the Contracts, SBT purchased 33,056 metric tons of pig iron. Subsequently, however, SBT ceased purchasing pig iron from appellants as required by the Contracts and, by October 2008, SBT was in default of the Contracts. Indeed, in 2008, as the global economy declined, the so-called “commodities bubble” burst, causing many commodities to drop in price by more than a third. See, e.g., Clifford Krauss, Commodity Prices Tumble, N.Y. Times, Oct. 13, 2008, http:// www.nytimes.com/2008/10/14/business/ economy/14commodities.html (stating that “[m]etals, like aluminum, copper, and nickel have declined by a third or more.”). Soon thereafter, appellants contacted SBT regarding its non-compliance with the Contracts and, on November 20, 2008, SBT representative Dominic Sigrist responded via e-mail, stating: You know our group and it is not our style to walk away from obligations.... We will need a long time to work this out together. My message to your group is: we are not walking away!!! App’x at 792 ¶ 42. Appellants allege this was a false representation made in furtherance of Mende and Kundrun’s fraudulent conveyance scheme, which involved selling SBT’s assets to a separate entity— a shell company owned by Mende and Kundrun. Despite SBT’s statement that it would not walk away from its obligations, appellants allege they learned through publicly available shipping records that SBT had been purchasing pig iron from other sources. On September 11, 2009, appellants sent a written notice to SBT stating amounts due from SBT under the Contracts and proposing negotiation prior to submitting the contract breach to arbitration before the International Chamber of Commerce, Paris (the “ICC Paris”). SBT allegedly asked for some time to evaluate the Contracts and respond to the offer to negotiate. Appellants allege, however, that this was simply a ruse to buy time to allow its alter-egos, appellees, to “engage in a scheme to leave SBT assetless and unable to pay its some of creditors, including [appellants].” App’x at 793 ¶ 45.