BY DAVID BEARD
The Biafora family business dispute wh Lake Lynn Generation following the summer drought continues to play out in federal court.
Marina 1 LLC, a Biafora family company doing business as Cheat Lake Marina, wants the case sent back to county circuit court. Lake Lynn wants it kept in federal court and wants the case dismissed.
The opposing motions – to remand the case to circuit court and to dismiss it – will be taken up at a March 17 hearing in the U.S. District Court for the Northern District of West Virginia in Clarksburg. Should the parties fail to reach a settlement at some point, a trial is scheduled for Jan. 20, 2026 – more than a year from now.
Marina 1 filed suit Sept. 30, alleging that before the Labor Day weekend, Lake Lynn deliberately lowered the level of Cheat Lake below the 868-foot minimum in violation of its FERC license. This caused various damages, some of them irreparable.
Marina 1 is seeking $50,000 compensation for property damages.
Both parties have spelled out their cases in a series of court filings.
Lake Lynn argues the case should be dismissed because it is “an impermissible collateral attack” on its FEC license, the federal court has no jurisdiction over how the company should prioritize competing FERC license requirements, and Marina 1’s claims are preempted by federal law.
Lake Lynn argues that in an emergency, such as last summer’s drought, it may temporarily deviate from the minimum water level requirement in order to preserve the downstream oxygen levels. The company acted in compliance with its license and FERC has issued no violations.
Also, Lake Lynn argues, Marina 1’s petition for compensation is tied to the FERC license and should be determined by a FERC proceeding, not a court ruling. Only FERC can regulate how lake Lynn responds to competing FERC requirements.
Marina 1, arguing its case to send the suit back to Monongalia County Circuit Court, where it originated, says Lake Lynn violated its FERC license.
But the violation did not violate any federal law meriting consideration in a federal court, Marina 1 argues. The Federal Powers Act grants FERC the ability to issue licenses and set requirements under those licenses. THE FPA is federal law. The FERC license is not federal law.
Marina 1’s allegations of strict liability, negligence and breach of contract associated with the request for $50,000 monetary damages rely on state tort law, Marina 1 says, and are a matter for circuit court.
“This is a property damage claim. Defendant improperly lowered the water level of Cheat Lake. This action caused, and continues to indirectly cause, significant damage to plaintiff and many businesses alike. Defendant is liable for that damage and must compensate plaintiff,” Marina 1 says.
Lake Lynn summarizes its position: “Lake Lynn has not violated its FERC license; it was required to temporarily deviate from the minimum reservoir requirement in response to emergency conditions, which its FERC license permits.” FERC has already considered and accepted that severe drought conditions may have an adverse impact on boating marinas like Cheat Lake Marina. So Marina 1 must pursue and exhaust FERC administrative remedies before and the federal district court should dismiss the case.
Separately from the lawsuit, Marina 1 on Friday filed a comment in Lake Lynn’s case applying for a new license to operate the hydroelectric project, citing the same issues and objecting to FERC issuing a new license.
Marina 1 said, “Lake Lynn, when lowering the water level, chose to harm Cheat Lake Marina, perhaps in retaliation against its outspoken public criticism of Lake Lynn’s application and failure to maintain and care for Cheat Lake. As a result of the ongoing lower water level, Cheat Lake Marina’s docks and businesses, along with the community alike, have suffered harm.”
