Alexin, LLC v. Olympic Metals, LLC

53 N.E.3d 1184, 89 U.C.C. Rep. Serv. 2d (West) 608, 2016 WL 1594025, 2016 Ind. App. LEXIS 118
CourtIndiana Court of Appeals
DecidedApril 21, 2016
Docket90A02-1510-CT-1608
StatusPublished
Cited by1 cases

This text of 53 N.E.3d 1184 (Alexin, LLC v. Olympic Metals, LLC) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexin, LLC v. Olympic Metals, LLC, 53 N.E.3d 1184, 89 U.C.C. Rep. Serv. 2d (West) 608, 2016 WL 1594025, 2016 Ind. App. LEXIS 118 (Ind. Ct. App. 2016).

Opinion

NAJAM, Judge. '

Statement of the Case

[1] Alexin, LLC (“Alexin”) appeals the trial court’s judgment in favor of Olympic Metals, LLC (“Olympic”) on Olympic’s counterclaim seeking attorney’s fees under Indiana Code Section 34-52-l-l(b). Alex-in presents a single issue for our review, namely, whether the trial court abused its discretion when it awarded Olympic attorney’s fees. Olympic cross-appeals and requests appellate attorney’s fees. We conclude that the trial court did not abuse its discretion when it awarded Olympic attorney’s fees, and we deny Olympic’s request for appellate attorney’s fees.

[2] We affirm.

Facts and Procedural History .

[3] Alexin is a manufacturer of aluminum extrusion ingots in Bluffton. Olympic is an aluminum scrap broker located in Florida. In March 2013, Anita Eads, an Alexin employee, communicated with Cecil Shiver, a sales representative for Olympic, regarding Alexin’s desire to purchase a shipment of aluminum scrap. On April 15, Alexin issued Purchase Order No.' 16208 (“the purchase order”) to Olympic requesting delivery of 40,000 pounds of “2XXX Series Aluminum Scrap” 1 for $33,800. Appellant’s App. at 292. Alexin specified in the purchase order that the “[mjaterial will be 2024 sheets with thin paper in between.” Id.

[4] On April 25, Olympic delivered 40,643 pounds 2 of aluminum sheets and extrusions to Alexin to fill the purchase order. The shipment consisted of the following: 26,478 pounds of 2024 aluminum sheets; 5,155 pounds of 2024 extruded aluminum; and 8,060 pounds of 2090 aluminum sheets. Each of the three types of aluminum included in the shipment was clearly stamped as 2024 or 2090, and the various types of aluminum .scrap were segregated onto separate pallets. The purchase order and bill of lading stated that only 2024 aluminum was being delivered, but a handwritten note provided to the Alexin clerk who received the shipment, Remington Steele, stated that part of the shipment was 2090 aluminum. Steele stamped “Received” on the purchase order, bill of lading, and handwritten note, and he signed his name to each stamp under the word “Received.” Id. at 229-31.

[5] On May 29, Alexin melted down some of the aluminum scrap that Olympic had shipped on April 25. 3 The resulting batch of aluminum • ingots had to' be “scrapped” because of poor quality. Id. at 243. On May 30, Tom Horter, Alexin’s CEO, sent an email to other Alexin employees, including Kevin Ferguson, that stated the following:

*1188 We had to scrap another cast last night for high Li[thium]. We have found the culprit which is alloy 2090 sheet that is in the 2XXX series bin. We have segregated this bin for now until it can be sorted. The scrap is a unique sheet that is very brittle (2% or so Li[thium]) and has a shiny “aluminum-like” side and a darker gray side.
Kevin, this may have been purchased simply as a 2XXX series package or part of one and if so can very well be in compliance with our [purchase order], but nonetheless we should try to find out from whom we bought it. Also, for all future 2XXX series scrap purchases, we will need to. add a note that alloy 2090 cannot be included in the package. There may be others too and I will get you that list. For now, we will just have to fight through the next few charges to get it down.

Appellant’s App. at 243-44.

[6] On June 4, Shiver emailed Eads and requested payment for the April 25 shipment. In response, Eads replied as follows:

I was out of the office due to an illness since we last spoke. The material we discussed last week, 2024 sheet material purchase order, also included 2090 sheet. Please see attached pictures of the 2090 sheets that were sorted from the shipment. It is stamped directly on the sheets “2090.” This material has High Li[thium] and is not usable by Alexin. We have what material we sorted out placed on pallets. The Alexin management team would like Olympic Metals to pick up the remaining material. Please review the pictures and let’s discuss. I am waiting [for] someone to weigh the material sorted. Once I have that information, I will provided [sic] that to you as well.

Id. at 236 (emphases added). At some point, “[s]omeone at Alexin” told Shiver that Alexin had melted some of the 2090 aluminum in its furnace, which had “caused damage to its furnace by contaminating it[] and resulted in charges and fees associated with its furnace.” Id. at 224. But Alexin’s maintenance manager, Scott Evans, told Shiver that Alexin’s furnaces “were not damaged during [the relevant] period” of time. Id. Accordingly, on June 12, Shiver sent the following email to Ferguson:

With all due respect, the commercial agreement in Alexin’s terms and conditions does not address the issue of Alexin’s responsibility with regards to quality control, segregation^] and prior acceptance of material received.
Regrettably, Alexin placed material in the furnace that resulted in a loss to conformity. We are not disputing that we did not ship [sic] 2090 material and in fact we are stating that Alexin signed for and issued a settlement confirmation based on a clearly marked packing slip that all the material was acceptable. There was no attempt to ever mislead Alexin or hide the material. If the material was not acceptable, then the first course of action should have been to reject the undesirable material and contact Olympic Metals. The burden lies with Alexin and its employees to inspect and approve all shipments into Alexin’s facility. To this point, Olympic Metals is in position [sic] of all the supporting documents that the load was accepted. To complicate this issue further, the material was not even segregated by load and was mixed and/or blended with other material from multiple Alexin vendors making it more difficult to determine the actual source of nonconforming material. In addition, Olympic Metals continues to seek compensation for the past due amount owed on the load delivered.
*1189 However, Olympic Metals will accept rejection of the 8,060 lbs. of the 2090 material if Alexin so chooses. Olympic Metals would then revert to the supplier for reconciliation which is standard practice in the industry.

Id. at 241-42 (emphases added).

[7] On July 1, 2013, Alexin filed a complaint against Olympic in the United States District Court for the Northern District of Indiana alleging breach of express warranty, breach of implied warranty of fitness for a particular purpose, and breach of implied warranty of merchantability and seeking damages of $91,518. The next day, American Metal Market (“AMM”), an industry publication, reported on Alexin’s lawsuit as follows:

A dispute between an aluminum billet producer and a scrap broker over a truckload of scrap has escalated to the legal system, much to the surprise of the broker.

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53 N.E.3d 1184, 89 U.C.C. Rep. Serv. 2d (West) 608, 2016 WL 1594025, 2016 Ind. App. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexin-llc-v-olympic-metals-llc-indctapp-2016.