Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions v. Rockline Industries, Inc.

CourtSuperior Court of Delaware
DecidedMarch 11, 2016
DocketN12C-09-094 JRJ CCLD
StatusPublished

This text of Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions v. Rockline Industries, Inc. (Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions v. Rockline Industries, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions v. Rockline Industries, Inc., (Del. Ct. App. 2016).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

ALLTRISTA PLASTICS, LLC d/b/a ) JARDEN PLASTIC SOLUTIONS ) ) Plaintiff, ) ) v. ) C.A. No. N12C-09-094 JRJ CCLD ) ROCKLINE INDUSTRIES, INC., ) ) Defendant. )

OPINION

Date Submitted: February 5, 2016 Date Decided: March 11, 2016

Upon Plaintiff’s Motion for Summary Judgment: DENIED.

Joseph A. Bellew, Esquire, Cozen O’Connor, Wilmington, DE, James H. Heller, Esquire (pro hac vice) (argued), Abby L. Sacunas, Esquire (pro hac vice), Cozen O’Connor, Philadelphia, PA, Attorneys for Plaintiff Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions.

Daniel J. Brown, Esquire, James J. Freebery, Esquire, McCarter & English, LLP, Wilmington, DE, Jessica H. Polakowski, Esquire (pro hac vice), Reinhart Boerner Van Deuren, s.c., Madison, WI, Guy R. Temple, Esquire (pro hac vice) (argued), Reinhart Boerner Van Deuren, s.c., Milwaukee, WI, Attorneys for Defendant Rockline Industries, Inc.

Jurden, P.J. I. INTRODUCTION

Before the Court is Plaintiff Alltrista Plastics, LLC d/b/a Jarden Plastic

Solutions’ (“Jarden”) Motion for Summary Judgment on its breach of contract

claim against Rockline Industries, Inc. (“Rockline”), and for dismissal of

Rockline’s counterclaims for intentional misrepresentation, breach of the implied

covenant of good faith and fair dealing, promissory estoppel, and unjust

enrichment.1

II. BACKGROUND

A. The Parties

Jarden supplies plastic packaging solutions, including thin-wall plastic

injection molded products, to a variety of industries. 2 Rockline produces, among

other things, disinfecting wet wipes. 3 In 2009, Jarden approached Rockline about

manufacturing wet wipe canisters for Rockline using Jarden’s “LitePak” canister

design.4 LitePak canisters are thin-walled, injection molded canisters that are

1 Motion for Summary Judgment (“Jarden Mot. Summ. J.”) (Trans. ID. 58195759); Defendant Rockline Industries’ Memorandum of Law in Opposition to Jarden’s Motion for Summary Judgment (“Rockline Resp.”) (Trans. ID. 58328694); Plaintiff’s Reply Memorandum in Support of its Motion for Summary Judgment (Trans. ID. 58435227). 2 Joint Pre-Trial Stipulation at 13 (Trans. ID. 58679062). 3 Id. 4 Jarden Mot. Summ. J. at 3; Rockline’s Resp. at 3, Ex. C Deposition of Mike Zaagman at 69:15– 21. 2 “lighter in weight and more bio-degradable” than traditional blow molded

canisters. 5

In November 2009, Jarden and Rockline executed a Letter of Understanding

(“LOU”) outlining the anticipated terms and conditions of a future supply

agreement.6 Canisters from Jarden’s single cavity prototype tool were provided to

Rockline in late 2009 “to allow Rockline to verify whether the [p]rototype

[c]anisters would work in Rockline’s manufacturing process.”7

On October 19, 2010, Kishore Gonpati (“Gonpati”), a Rockline packaging

engineer, signed a canister design drawing (“October 2010 Design Drawing”) for

Jarden to use in cutting an eight cavity production tool.8 That same day, Gonpati

circulated the October 2010 Design Drawing and a component specification

document numbered “24021 Revision A” (“Component Specification 24021”) to

Jarden employees, Timothy Benz (“Benz”) and Susan Braun.9

5 Jarden Mot. Summ. J. at 3. 6 Jarden Mot. Summ. J., Ex. E. 7 Rockline Resp. at 3. 8 Jarden Mot. Summ. J., Ex. G Deposition of Kishore Gonpati at 137:10–15 (Q. - - on [Jarden Mot. Summ. J., Ex. H] was that your way of telling Jarden, among other people, that the prototype tool was approved and that you could then start cutting the production tool? A. Correct.). 9 Jarden Mot. Summ. J., Ex. B Deposition of Timothy Benz at 37:19–38:1; Jarden Mot. Summ. J., Ex. I. 3 B. The Supply Agreement

Jarden and Rockline signed a contract (“Supply Agreement”) on November

2, 2010. 10 Pursuant to the Supply Agreement, the “one (1) cavity prototype tool”

would be modified by Jarden at Rockline’s expense to become “a set of workable

plastic injection tools for the production of 105[]mm cylindrical [wet] wipe

canisters . . . (‘Canisters’).” 11 Rockline agreed to purchase “at least 13,000,000

Canisters . . . (the ‘Annual Minimum’)” each year, for three years, and, if Rockline

did not “purchase the Annual Minimum for any reason other than Jarden’s failure

to supply . . . Rockline [would pay] . . . for the purchase shortfall.” 12

The Supply Agreement also provides that the total cost “for the Tool shall be

$500,000.00,” consisting of $200,000.00 Rockline previously paid to Jarden under

the LOU and $300,000.00 Rockline agreed to pay to Jarden “within ten (10) days

of Tool validation.” 13

Section 4(a) of the Supply Agreement provides that “Jarden and Rockline

shall work together to reach agreed upon Specifications,” and “[o]nce the parties

10 Joint Pre-Trial Stipulation at 13; Jarden Mot. Summ. J., Ex. A Supply Agreement (“Supply Agreement”). 11 Supply Agreement p.1. 12 Id. ¶ 1(i). 13 Id. p. 1, ¶ 3(c). The Supply Agreement “supersedes and replaces the terms of any and all prior discussion, agreements or understanding between the Parties,” including the November 12, 2009 Letter of Understanding. Id. ¶ 23; Jarden Mot. Summ. J., Ex. E. 4 reach agreed upon Specifications, Jarden shall materially conform to the respective

specifications as set forth in Exhibit A” (“Canister Specifications”). 14

C. Development of the Production Tool

According to Rockline, Rockline ordered a shipment of “TR 12” canisters,

and, upon receipt, shrink wrapped pallets of the TR 12 canisters for a stack test,

“with intent to then complete a final ship test.”15 When Rockline employees

inspected the pallets, they reported denting, buckling, and cracking in the TR 12

canisters. 16 On March 21, 2012, Rockline informed Jarden that the canisters had

failed Rockline’s stack test.17

Jarden immediately sent a representative, Todd Zillmer (“Zillmer”), to

Rockline’s warehouse to view the TR 12 canisters.18 Zillmer believed that the

observed damage to the TR 12 canisters was caused by Rockline shrink wrapping

the canisters too tightly. 19 Rockline, however, did not believe that the shrink

wrapping caused the damage, and sent Jarden a checklist of “variables to be

investigated and documented.” 20 According to Rockline, the purpose of the

14 Supply Agreement ¶ 4(a). 15 Jarden Mot. Summ. J., Ex. T. 16 Id. 17 Id. 18 Joint Pre-Trial Stipulation at 13. 19 Jarden Mot. Summ. J., Ex. C June 17, 2015 Deposition of Ronald Kerscher at 168:23–169:14. 20 Rockline Resp. at 8, Exs. S, T. 5 checklist was to help determine why the TR 12 canisters were not performing as

well as the prototype canisters. 21

Jarden never responded to Rockline’s checklist and request for an

investigation. Instead, Jarden filed the instant action alleging breach of contract

against Rockline because, according to Jarden, Jarden had fulfilled its contractual

obligations and it was clear that “Rockline was going to breach the Supply

Agreement by refusing to order the canisters or pay the outstanding balance for the

tool.” 22

Rockline then counterclaimed, alleging breach of contract, intentional

misrepresentation, breach of the covenant of good faith and fair dealing,

promissory estoppel, and unjust enrichment. 23

III. STANDARD OF REVIEW

Superior Court Civil Rule 56 permits summary judgment when “there is no

genuine issue as to any material fact” such that “the moving party is entitled to a

judgment as a matter of law.”

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Alltrista Plastics, LLC d/b/a Jarden Plastic Solutions v. Rockline Industries, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/alltrista-plastics-llc-dba-jarden-plastic-solutions-v-rockline-delsuperct-2016.