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The coalition was formed by the savvy business people of Carnwath as an economic trade deal. The coalition solidified diplomatically when the Clan Jade Falcon's arrived in 3134. The Falcons moved in to capture the worlds of the Carnwath Coalition and issued a batchall to its leadership. Coalition answered the Falcons' batchall with a diplomatic business offer: tribute.
They proposed to offer a healthy percentage of each planet's gross planetary product plus a portion of all trade passing through the three systems. In addition, the Jade Falcons would have free and unlimited access to any bases, repair facilities, or any installations they deemed necessary.
In exchange the Jade Falcons would maintain a minimum presence in each system. With the smallest force they thought necessary, they would hold the jump points and oversee the local military to ensure the three worlds were complying with the agreement – and allow the world to administer domestic affairs and deal with internal issues on their own.
The coalition officials in 3136 hired the mercenary unit, Jamison's Juggernauts to investigate and possibly neutralize a suspected Word of Blake survivalist settlement which had been rumored to exist on Zebeneschamali.