Americorp Financial, L.L.C. v. Lansing Pharmacy, L.C.

923 F. Supp. 2d 1023, 2013 WL 497884, 2013 U.S. Dist. LEXIS 17072
CourtDistrict Court, E.D. Michigan
DecidedFebruary 8, 2013
DocketCase No. 11-14795
StatusPublished
Cited by3 cases

This text of 923 F. Supp. 2d 1023 (Americorp Financial, L.L.C. v. Lansing Pharmacy, L.C.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Americorp Financial, L.L.C. v. Lansing Pharmacy, L.C., 923 F. Supp. 2d 1023, 2013 WL 497884, 2013 U.S. Dist. LEXIS 17072 (E.D. Mich. 2013).

Opinion

OPINION AND ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

GERALD E. ROSEN, Chief Judge.

I. INTRODUCTION

Plaintiff Americorp Financial, L.L.C. commenced this action in state court in September of 2011, seeking to recover under a pair of financing agreements through which (i) Plaintiff agreed to provide financing for the purchase by Defendant Lansing Pharmacy, L.C. of two pharmaceutical dispensing systems, and (ii) this Defendant, in turn, allegedly obligated itself to repay this financing through a series of sixty consecutive monthly installment payments. Plaintiff also seeks to recover under guaranties executed by Defendants Robert Winters, Winters Pharmacies, Inc., and Winters Companies, through which these three Defendants allegedly guaranteed the repayment obligations owed by Defendant Lansing Pharmacy under the financing agreements. Defendants removed the case to this Court on October 31, 2011, citing the diverse citizenship of the parties and an amount in controversy that exceeds $75,000. See 28 U.S.C. § 1332(a).

Through the present motion filed on April 30, 2012, Plaintiff now seeks summary judgment in its favor as to the repayment obligations owed by Defendants under the financing agreements and guaranties, arguing that Defendants have failed to identify a factual basis for any of the affirmative defenses to liability they have asserted in their answer to Plaintiffs complaint. On May 24, 2012, Defendants filed a response in opposition to Plaintiffs motion, contending that Plaintiff failed to act in good faith by allegedly impeding Defendant Lansing Pharmacy’s efforts to sell or sublet the pharmaceutical dispensing equipment to other companies, and that these allegedly obstructive actions by [1025]*1025Plaintiff constituted a breach of Plaintiff s obligation to mitigate its damages. Plaintiff then filed a reply in further support of its motion on June 7, 2012, primarily challenging the viability of the affidavit and other materials produced by Defendants in their effort to identify genuine issues of fact that would preclude summary judgment in Plaintiff’s favor.

Having reviewed the parties’ briefs in support of and opposition to Plaintiffs motion, as well as the accompanying exhibits and the remainder of the record, the Court finds that the relevant allegations, facts, and legal arguments are adequately presented in these written submissions, and that oral argument would not aid the decisional process. Accordingly, the Court will decide Plaintiffs motion “on the briefs.” See Local Rule 7.1(f)(2), U.S. District Court, Eastern District of Michigan. This opinion and order sets forth the Court’s rulings on this motion.

II. FACTUAL BACKGROUND

On July 31, 2008, Defendant Lansing Pharmacy, L.C. entered into two equipment finance agreements with Plaintiff Americorp Financial, L.L.C., in order to secure financing for the lease of two pharmaceutical dispensing systems from a third party, Parata Systems, L.L.C. (See Plaintiffs Motion, Exs. 1, 6, 7/31/2008 Equipment Finance Agreements.)1 Under these agreements, Lansing Pharmacy agreed to repay Plaintiff for the financing through a series of sixty consecutive monthly installment payments. Lansing Pharmacy’s chairman and chief executive officer, Defendant Robert Winters, executed guaranties in which he unconditionally agreed to make all payments and meet all other obligations called for under the finance agreements, (see Equipment Finance Agreements at 1), and two other companies associated with Mr. Winters, Defendants Winters Pharmacies, Inc. and Winters Companies, also executed guaranties of Lansing Pharmacy’s obligations under the finance agreements, (see Plaintiffs Motion, Exs. 4, 5, 9, Corporate Guaranties).

The two finance agreements both included a number of provisions that bear upon the parties’ claims and defenses in the present suit.2 First, they defined a “[d]e-fault” as, among other things, a failure to make any payment when due. (See Equipment Finance Agreements at 2.) Upon a default, Plaintiff was authorized to “retake immediate possession of the Equipment without any court order or other process of law” and “sell or re-rent the Equipment at any public or private sale,” and to “accelerate without notice all sums payable under the Agreement ... and require [Lansing Pharmacy] to immediately pay [Plaintiff] all sums that are already due and the discounted value ... of all payments that will be due, under this Agreement, less the net proceeds of disposition, if any, of the Equipment.” (Id.) Lansing Pharmacy was advised that it had “no right to sell, transfer, assign or sublease [1026]*1026the equipment or this Agreement,” that it was required to “make all payments under this Agreement regardless of any claim or complaint” against the equipment supplier, and that Plaintiff took no “responsibility for the installation or performance of the Equipment” and made “no warranty, express or implied, ... that the Equipment is fit for a particular purpose or that the Equipment is merchantable.” (Id.) Finally, the finance agreements were to be “governed by and construed in accordance with the laws of Michigan,” and they stated that the agreements and their accompanying guaranties constituted “the entire agreement and understanding between” the parties and guarantors, that “neither party relies upon any other statement or representation,” and that the agreements could not be modified “unless in writing, signed by [Plaintiff].” (Id.)

On June 23, 2010, the two finance agreements were amended to modify and extend their payment terms, purportedly as an accommodation to Lansing Pharmacy. (See Plaintiffs Motion, Exs. 3, 8, 6/23/2010 Amendments; see also Plaintiffs Motion, Amell 4/30/2012 Aff. at ¶¶ 5, 8.) Since May of 2011, however, Lansing Pharmacy has failed to make the monthly installment payments called for under the finance agreements.

As discussed in greater detail below, in the latter part of 2010 and in 2011, Lansing Pharmacy asserts that it made various efforts to either sell or sublet the equipment covered by the finance agreements. None of these efforts was successful, however. Instead, Plaintiff brought the present suit in September of 2011, asserting a breach of contract claim against Lansing Pharmacy, seeking to collect on the guaranties executed by the remaining Defendants, and requesting that it be awarded possession of the equipment covered by the finance agreements.3

III. ANALYSIS

A. The Standards Governing Plaintiffs Motion

Through the present motion, Plaintiff seeks an award of summary judgment in its favor on each of the claims asserted in its complaint. Under the pertinent Federal Rule, summary judgment is proper “if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a).

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Bluebook (online)
923 F. Supp. 2d 1023, 2013 WL 497884, 2013 U.S. Dist. LEXIS 17072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/americorp-financial-llc-v-lansing-pharmacy-lc-mied-2013.