Allan Block Corp. v. County Materials Corp.

588 F. Supp. 2d 976, 2008 U.S. Dist. LEXIS 99298, 2008 WL 5061643
CourtDistrict Court, W.D. Wisconsin
DecidedNovember 28, 2008
Docket06-cv-476-bbc
StatusPublished

This text of 588 F. Supp. 2d 976 (Allan Block Corp. v. County Materials Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allan Block Corp. v. County Materials Corp., 588 F. Supp. 2d 976, 2008 U.S. Dist. LEXIS 99298, 2008 WL 5061643 (W.D. Wis. 2008).

Opinion

OPINION AND ORDER

BARBARA B. CRABB, District Judge.

Plaintiff Allan Block Corporation prevailed at trial in this breach of contract action, proving that defendant County Materials Corporation sold several competing lines of concrete blocks in violation of the parties’ licensing agreement. The Court of Appeals for the Seventh Circuit affirmed the jury’s finding of liability and remanded for a damages trial on two lines of concrete blocks that were improperly excluded from the first trial. On July 15, 2008, this court entered an order defining the scope of the remanded action as “limited to a determination of the amount of damages plaintiff incurred as a result of defendant’s sale of Keystone and County Cub blocks during the period that such sales were prohibited by the parties’ agreement.” Dkt. # 291.

Defendant has moved for summary judgment on the ground that plaintiff has failed as a matter of law to produce evidence that could sustain a determination of damages for the sale of either type of block. I conclude that defendant is correct. Plaintiff has not proposed sufficient facts to permit a reasonable jury to find that it suffered damages as a result of defendant’s sales of Keystone and County Cub blocks during the relevant time period. I conclude also that plaintiff had ample time and opportunity to elicit discoverable information to support its damages claim. Therefore, defendant’s motion for summary judgment will be granted.

From the trial and appeal records, and the submissions of the parties, I find that the following facts are both undisputed and material.

FACTS

Plaintiff Allen Block Corporation licensed defendant County Materials Corporation to manufacture its patented concrete retaining wall blocks in two separate licensing agreements. The agreements included non-compete provisions that precluded defendant from manufacturing competing blocks during the period of the agreements and for eighteen months after termination. Defendant manufactured and sold several types of competing blocks in violation of the agreement, including Keystone and County Cub blocks.

In 2003, defendant acquired a non-exclusive right to manufacture the Keystone *978 blocks for Best Block Company after purchasing a manufacturing facility from Best Block, the trademark owner and seller of Keystone blocks. Best Block resells the Keystone blocks to retail outlets, landscape companies, construction companies and others. It sells no other kind of retaining wall blocks. Defendant is one of a number of different manufacturers in Wisconsin, Illinois and Iowa to whom Best Block provides molds for the Keystone blocks to assure itself an adequate supply of blocks.

County Cub blocks are an acceptable substitute for Allan blocks in the marketplace for retaining wall block.

Plaintiff commenced this action on August 29, 2006. The court set a discovery deadline of December 1, 2006. On December 1, the court denied defendant’s motions for summary judgment, leaving as one issue for trial the determination of the damages plaintiff incurred when defendant manufactured Best Block’s competing Keystone blocks and its own County Cub blocks, in violation of the parties’ agreements. On December 2, 2006, plaintiff served the report of its damage expert, Arthur Cobb, which included total sales figures for County Cub blocks, but did not identify sales by date and location. On December 1, 2006, plaintiff moved to compel discovery of evidence of defendant’s profits on the sale of competing concrete blocks. On December 4, 2006, the court granted the motion to compel additional damages-related discovery.

On appeal, the court of appeals found that the court erred in limiting plaintiff in its effort to obtain damages for competing sales of blocks. The trial court had ruled mistakenly that plaintiff should have filed a counter-claim in defendant’s eountersuit for declaratory judgment against plaintiff. Relying on that ruling, the court held that plaintiff was entitled to damages only for the period after the time for filing such counterclaims had elapsed.

On April 1, 2008, after remand from the court of appeals, this court entered a scheduling order providing the parties an additional ninety days of discovery, until June 30, 2008. On May 23, 2008, plaintiff served defendant its third request for production of documents seeking, among other things, documents relating to quantity, sales revenue, profits and market studies for Keystone and County Cub blocks. On the same day plaintiff served defendant a notice of a Rule 30(b)(6) deposition of defendant, asking defendant to designate a witness to testify on the same topics identified in the motion for production of documents. On June 20, 2008, defendant responded to both requests, objecting to the request for production of documents on the ground that all responsive materials had been “previously produced” and to the Rule 30(b)(6) deposition on the ground that the topics proposed for the deposition were duplicative of those asked in previous depositions. Plaintiff filed no motion to compel document production or proceed with the Rule 30(b)(6) deposition.

OPINION

Defendant’s motion for summary judgment raises only two questions: whether plaintiff has proffered enough evidence to create a genuine issue of fact that it incurred damages as a result of defendant’s sale of Keystone or County Cub blocks and, if not, whether it should be excused from putting forth evidence because it has been denied a fair opportunity for discovery. A factual issue is genuine only if the evidence is such that a reasonable factfinder could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Under Rule 56(e)(2), it is the obligation of the nonmov- *979 ing party to set forth specific facts showing that there is a genuine issue for trial.

A. Keystone Block

Plaintiff is entitled to damages that will place it in the position it would have been in had defendant not manufactured Keystone blocks for Best Block. 1 For purposes of this motion only, I will assume that if Keystone blocks were unavailable in the market place, purchasers would have bought more blocks from plaintiff because plaintiffs blocks are a reasonable substitute for Keystone. However, plaintiff has failed to provide evidence on the unavailability of Keystone blocks. The only reasonable conclusion from the undisputed facts is that even if defendant had not manufactured Keystone Blocks, the blocks would have remained equally available because other Keystone manufacturers would have filled the void left by defendant. This leaves no basis on which to conclude that sales of Allan block were affected by defendant’s breach.

The president and CEO of Best Block, Jerome Sayles, averred in his declaration that at all relevant times Best Block had a number of manufacturers and suppliers of Keystone block in Wisconsin, Illinois and Iowa with the capability to satisfy Best Block’s entire demand for Keystone block in the event defendant failed to provide any. Sayles Deck, dkt. # 294, exh.

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588 F. Supp. 2d 976, 2008 U.S. Dist. LEXIS 99298, 2008 WL 5061643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allan-block-corp-v-county-materials-corp-wiwd-2008.