Allstate Homecraft, Inc. v. Kaiser Aluminum & Chemical Sales, Inc.

672 F. Supp. 965, 1987 U.S. Dist. LEXIS 10079
CourtDistrict Court, S.D. Texas
DecidedNovember 2, 1987
DocketCiv. A. No. H-84-3580
StatusPublished
Cited by1 cases

This text of 672 F. Supp. 965 (Allstate Homecraft, Inc. v. Kaiser Aluminum & Chemical Sales, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Homecraft, Inc. v. Kaiser Aluminum & Chemical Sales, Inc., 672 F. Supp. 965, 1987 U.S. Dist. LEXIS 10079 (S.D. Tex. 1987).

Opinion

MEMORANDUM AND ORDER

STERLING, District Judge.

This case came on for trial before the Court and a jury. After three and one-half days and before the close of Plaintiffs’ case in chief, the Court ruled from the bench that it would dispose of the case. The basis for the Court’s action is that in the course of the proceeding it became clear that; (1) no fact material to the Plaintiffs’ case was in dispute, (2) notwithstanding repeated solicitation by the Court, Plaintiff ALLSTATE HOMECRAFT, INC. (“A.H., INC.”) was unable to articulate any legal theory upon which it might show itself entitled to relief from the Defendant, and (3) that the testimony of its witness and president, Don Miller, irrefutably negated the claim of fraud brought by CLASSIC PRODUCTS, INC. (“CLASSIC”). In support of this its order adjudicating the case, the Court sets forth the following undisputed facts and its conclusions of law.

Undisputed facts:

I. That some Kaiser aluminum shingles, produced in some particular colors, and installed in some geographic areas (including Houston, Texas) have failed to live up to the promotional claims made of them by Kaiser, i.e., some shingles have “peeled”; i.e., the paint did not adhere to the aluminum surface.

2. That Kaiser warranted its shingles against such peeling for 20 years.

3. That Kaiser’s warranty gave it the option to repair or replace, on a prorated basis, any product which failed.

4. That Kaiser has negotiated settlement of some warranty claims by exchange of a cash settlement to the homeowner for a written release of Kaiser by the homeowner.

5. That Allstate Homecraft, Inc., a plaintiff herein, did not exist prior to May 1, 1981.

6. That Allstate Homecraft, Inc. never bought any aluminum roofing material from Kaiser.

7. That Allstate Homecraft, Inc. never installed a Kaiser aluminum roof.

8. That prior to December 31,1980, Kaiser had ceased to manufacture or sell the aluminum roofing material involved in this lawsuit.

9. That Classic bought from Kaiser its equipment and machinery designed to produce and be used by Kaiser to fabricate the “Rustic shingle” formerly manufactured and marketed by Kaiser.

10. That the terms of such sale of equipment were “as is”, “where is.”

11. That prior to sale Kaiser provided Classic with the names of at least 2 distributors of Kaiser shingles who had experienced paint failure.

12. That prior to sale Classic had actual notice of at least 2 distributors and at least 1 commercial end user of the Kaiser shingle who had experienced paint problems.

13. That with such actual knowledge, Classic thereafter proceeded to consumation of the sale.

14. That Kaiser, prior to sale, declined to offer for sale its paint process for the stated reason of “potential legal liability.”

15. That Classic, with actual knowledge of Kaiser’s position regarding its paint process, proceeded to consumation of the sale.

16. That after the sale of the subject machinery, etc., and with actual knowledge of Kaiser customers who had experienced paint adhesion problems, Classic sought to obtain and obtained from Kaiser the trade marks and trade names applicable to the shingle Classic then produced.

17. That Classic was at no time a “customer” of Kaiser.

CONCLUSIONS OF LAW: PROCEDURAL

A district court has the inherent power to dismiss a case at any time for [968]*968failure to prove a claim. D.P. Apparel Corp. v. Roadway Express, Inc., 736 F.2d 1, 3 (1st Cir.1984). Implicit in this concept is the power to dismiss where, as here, the Plaintiff has failed even to state a claim. The court may effectively control and manage its affairs to achieve the expeditious disposition of cases. Id., 736 F.2d at 4. There is no absolute requirement that a dismissal be delayed until the close of a plaintiff’s case. Mercado v. Austin Police Dept., 754 F.2d 1266, 1269 (5th Cir.1985). It is within the discretion of the trial judge to invite a litigant to move for involuntary dismissal and for the judge to then grant the motion. Id., 754 F.2d at 1266. It is the duty of the trial judge to conduct the litigation process economically and efficiently. Id., 754 F.2d at 1269. The trial judge has the inherent power to control and manage the affairs of his court and he is charged with the duty to conduct the trial process with due efficiency. Therefore, as in this case, when the matter before the Court is one of those rare and exceptional cases in which a court upon due consideration of the substantive rights of the parties sees fit to dispose of the action before the close of the plaintiff’s case, a requirement that the Court solicit a motion by the defendant then immediately grant the motion would be superfluous, the goal being attainable by the Court's sua sponte treatment of the matter.

“When the evidence is such that without weighing the credibility of the witnesses there can be but one reasonable conclusion as to the verdict, the court should determine the proceeding by non-suit, directed verdict or otherwise in accordance with the applicable practice without submission to the jury, or by judgment notwithstanding the verdict.” Brady v. Southern Ry. Co., 320 U.S. 476, 479, 64 S.Ct. 232, 234, 88 L.Ed. 239 (1943).

The standard for ordering a directed verdict is set forth in the often cited Boeing case:

On motions for directed verdict and for judgment notwithstanding the verdict the Court should consider all of the evidence — not just the evidence which supports the non-mover’s case — but in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motions is proper ... A mere scintilla of evidence is insufficient to present a question for the jury ... There must be a conflict in substantial evidence to create a jury question.

Boeing Company v. Shipman, 411 F.2d 365, 374-75 (5th Cir.1969).

DISCUSSION AND CONCLUSIONS OF SUBSTANTIVE LAW

This cause of action was brought by two separate entities: ALLSTATE HOME-CRAFT, INC., (“A.H., INC.”), an entity engaged in the installation of such items as aluminum roofing material similar to that at the heart of this case, and CLASSIC PRODUCTS, INC. (“CLASSIC”), a producer of aluminum roofing material which bought from KAISER the rights and machinery necessary to manufacture the type of aluminum shingles formerly produced by KAISER. A.H., INC. presented its evidence first. When evidence going to the issue of damages was the only remaining element of A.H., INC.’s case yet to be explored, CLASSIC proceeded to put on factual evidence of its seminal claim alleging fraudulent acts and omissions by KAISER relating to the sale of the aluminum shingle product line.

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Related

Allstate Homecraft v. Kaiser
857 F.2d 1471 (Fifth Circuit, 1988)

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Bluebook (online)
672 F. Supp. 965, 1987 U.S. Dist. LEXIS 10079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-homecraft-inc-v-kaiser-aluminum-chemical-sales-inc-txsd-1987.