Air Brake Systems, Inc. v. Tuy Rheinland of North America, Inc.

699 F. Supp. 2d 462, 2010 U.S. Dist. LEXIS 30342, 2010 WL 1194503
CourtDistrict Court, D. Connecticut
DecidedMarch 30, 2010
Docket3:07-cv-01364 (CSH)
StatusPublished
Cited by5 cases

This text of 699 F. Supp. 2d 462 (Air Brake Systems, Inc. v. Tuy Rheinland of North America, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Brake Systems, Inc. v. Tuy Rheinland of North America, Inc., 699 F. Supp. 2d 462, 2010 U.S. Dist. LEXIS 30342, 2010 WL 1194503 (D. Conn. 2010).

Opinion

OPINION AND ORDER on Defendant’s Motion for Summary Judgment

HAIGHT, Senior District Judge:

Plaintiff Air Brake Systems, Inc. (“ABSI”) 1 has sued defendant TUV Rheinland of North America, Inc. (“TUVRNA”) for breach of contract, tortious interference with contract, fraud, negligence, and professional malpractice. ABSI originally filed its verified complaint in the United States District Court for the Eastern District of Michigan, invoking federal diversity jurisdiction. 2 In that court, TUVRNA moved for a change of venue to the District of Connecticut, because the contract at issue specified Connecticut in separate choice-of-law and choice-of-venue provisions. The court granted that motion, and the case was subsequently transferred to this judicial district. See Order & Opinion Granting Defendant’s Motion *464 To Transfer Venue [doc. # 28] (E.D. Mich. Aug. 31, 2007) (Ludington, J.).

TUVRNA now moves under Federal Rule of Civil Procedure 56 for summary-judgment, as well as to exclude the testimony of a purported expert witness.

I. Facts

A. Background

Plaintiff ABSI manufactures a pneumatic brake system for trucks and trailers, known as the MSQR-5000. ABSI alleges that in or around the year 2005, the company was trying to sell the MSQR-5000 “in the South African truck market.” Verified Compl. [doc. # 29] ¶ 9. After receiving preliminary approval from the relevant regulatory authorities, the company “had orders for several million dollars worth of MSQR-5000® in the country of South Africa, and had begun installation on truck trailers in South Africa. However, a group of competing manufacturers prevailed upon the [regulatory body] to require an additional series of tests on the MSQR-5000.” Id. ¶¶ 12-13. The documents provided by ABSI show that in early December 2005, following a “consumer concern,” the South African regulatory body “immediately retracted” its preliminary approval for the MSQR-5000, and instructed ABSI to “retract the product from the South African market until such time that compliance to [relevant regulations] can be proven.” PL’s Opp’n ex. 5 [doc. # 80-5] at 1, 2, 3.

In its complaint, ABSI alleges that its product had passed all the tests required for approval in South Africa, save one: the so-called “split friction test.” 3 Moreover, because facilities to perform the split friction test did not exist in South Africa, ABSI elected to perform the test in the United States, id. ¶¶ 14-15, perhaps because it believed that “[a]ll of the testing facilities in Europe were either owned or controlled by the Plaintiffs competitors.” PL’s Mem. in Opp’n [doc. # 80] at 3.

It was at this point — with the MSQR5000 recently banned in South Africa, and ABSI anxious to prove its compliance as to the split friction test — that the parties in this case first encountered one another. In early February of 2006, ABSI was referred to Link-Radlinski, a testing company with facilities in Ohio and Texas. Link-Radlinski was not qualified to certify anything under the South African regulations, so the company referred plaintiff to TUVRNA, which had a supposed expertise in the European analogue of the South African regulation. 4

ABSI’s primary contact at TUVRNA was Lead Engineer Serge Reding. Reding testified at his deposition that TUVRNA was an “approved authority to witness these tests, so it’s our responsibility to make sure that the tests are conducted, either we conduct them ourselves or we have to make sure that they are conducted!,] according to the [regulatory] standard.” Reding Dep’n, PL’s Opp’n ex. 16 [doc. # 80-16], at 16.

B. The Parties’ Contract for Testing Services

Reding negotiated the price for the testing directly with ABSI’s president, William E. Washington. Washington Dep’n, Def.’s Mot. ex. M, at 48 (Feb. 11, 2008). On or *465 about February 14, 2006, TUVRNA provided ABSI with a “Quotation for Product Evaluation,” which listed a project description and four itemized expenses. Compl. ex. A at 1 [hereinafter “Quotation”]. The Quotation form begins with the following boilerplate text:

Thank you for your interest in the services of TUV Rheinland of North America, Inc. We are very interested in your business and based on the information provided, we have prepared the following estimate. Unless otherwise specified, this project includes assistance with test plan preparation, review of the documentation (“information folder”), technical report and certification. This quotation does not include travel expenses, charged at cost, unless stated otherwise.

Id. (emphasis added).

Below the boilerplate text, specific details of the proposed “services” follow.

Description of Product and/or System_

MSQ.R-5000 ABS system tests according to ECE-R 13, Annex 13, on one semi-trailer.

Witness Testing, based on 2 days on-site at LRI, East Liberty, OH $3,600

Laboratory expenses, ine. vehicle prep, test track fees and driver (LRI) $11,500

Technical Report $1,200

Estimated travel expenses $500__

_TOTAL $16,800.00 USD

Id. Immediately below the itemized estimated costs, the form states that “Air Brake Systems Inc. hereby agrees to the terms stated in this quote.” The document is signed by ABSI president William E. Washington, on February 15, 2006, and it is not signed by anyone else. Id.

Washington also signed, on the same day, another document captioned “Service Agreement by and between TUV Rheinland of North America, Inc. and Air Brake Systems Inc.” Compl. ex. A at 2 [hereinafter “Service Agreement”]. 5 The Service Agreement, too, is not signed by anyone else.

It is undisputed that the Service Agreement provided the terms of the engagement between ABSI and TUVRNA. And while the parties dispute precisely what obligations that agreement imposed, there is no dispute that the Service Agreement properly incorporates by reference at least two addenda, namely “the attached [1] General Terms and Conditions & [2] Testing and Certification Regulations.” Serv. Aggr. at 1. Neither of those addenda is attached to ABSI’s complaint, but they are attached to TUVRNA’s Motion for Summary Judgment. See Def.’s Mot. ex. D [doc. # 70-5]. The parties also agree that “[p]rior to signing the Service Agreement, [Plaintiffs President William E.] Washington received and reviewed the ‘Terms and Conditions’ document referred to in the Service Agreement.” Def.’s Local Rule 56(A)(1) Statement [doc. # 73] ¶ 5; see also Pl.’s Responses to Def.’s Local Rule 56(A)(1) Statement [doc. #79] ¶ 5 (admitting same).

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699 F. Supp. 2d 462, 2010 U.S. Dist. LEXIS 30342, 2010 WL 1194503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-brake-systems-inc-v-tuy-rheinland-of-north-america-inc-ctd-2010.