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Novack and Macey Wins Remand Battle for Electric Power Grid

 09-26-2008
Novack and Macey LLP attorneys Eric Macey, Richard Douglass and Molly DiRago defeated a critical early battle on behalf of PJM Interconnection, L.L.C. ("PJM").  PJM is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia, providing service to more than 51 million people.  In April, 2008, PJM sued Mark Gorton, his hedge fund Tower Research Capital LLC, and affiliated entities in Delaware federal court.  PJM alleged violations of the federal Racketeering Influenced Corrupt Organizations Act, the Delaware Fraudulent Transfer Act and multiple other state law claims arising out of defendants' trading activities in PJM's markets.  Despite the pendency of that action, certain defendants filed another action involving the same issues in Pennsylvania state court which, if not removed to federal court, would have substantially increased PJM's litigation expenses.  To avoid this, Novack and Macey removed that case to federal court on the ground claim that defendants' principal claim arose under "federal" law, even though they called it a "state" law claim.  Defendants moved to remand the case back to state court, but on September 11, 2008, United States District Court Judge Norma L. Shapiro agreed with Novack and Macey, and denied the motion to remand in its entirety.
  
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