Judge Joanna Seybert
CSX Transportation, an interstate rail carrier, sued Emjay Environmental Recycling Ltd., a corporation that gains revenue by taking material onto its premises. CSX alleged that it and Emjay entered into private price lists and contracts which were binding. CSX contended Emjay agreed to compensate it for any freight that Emjay shipped on CSX’s rail lines. CSX subsequently brought claims for breach of contract in connection with Emjay’s alleged breach of a promissory note and failure to pay freight charges under the price lists. Emjay counterclaimed for breach of the promissory note, alleging that CSX failed to provide the "implied and explicit" level of service agreed upon. The court granted CSX’s motion to dismiss Emjay’s counterclaim, finding that it is not clear whether Emjay based its counterclaim on the promissory note, or upon the price lists or some verbal contract. The counterclaim failed to provide any insight as to the "level of service" that CSX was to supply. The counterclaim failed to provide CSX with fair notice of what the claim is and the grounds upon which it rests, adding that Emjay’s allegations of "understandings" between it and CSX falls significantly short of providing such notice.
