Battle Born Munitions Inc v. Dick's Sporting Goods Inc

CourtDistrict Court, D. Nevada
DecidedApril 16, 2020
Docket3:19-cv-00561
StatusUnknown

This text of Battle Born Munitions Inc v. Dick's Sporting Goods Inc (Battle Born Munitions Inc v. Dick's Sporting Goods Inc) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Battle Born Munitions Inc v. Dick's Sporting Goods Inc, (D. Nev. 2020).

Opinion

3 UNITED STATES DISTRICT COURT

4 DISTRICT OF NEVADA

5 * * *

6 BATTLE BORN MUNITIONS, INC., Case No. 3:19-cv-00561-MMD-CLB

7 Plaintiff, ORDER v. 8 DICK'S SPORTING GOODS, INC., 9 Defendant. 10 11 I. SUMMARY 12 Plaintiff Battle Born Munitions, Inc. seeks to represent a putative class of vendors 13 of Defendant Dick’s Sporting Goods, alleging violations of Nevada’s Deceptive Trade 14 Practices Act, NRS § 598.0903 to 598.0999 (“NDTPA”) and fraud in the inducement, in a 15 commercial dispute arising from Defendant’s alleged late payments for large shipments of 16 bullets. However, Plaintiff already sued Defendant in a case arising out of the same facts 17 that is still pending in the Western District of Pennsylvania, Battle Born Munitions, Inc. v. 18 Dick’s Sporting Goods, Inc., Case No. 2:18-cv-01418-NBF (W.D. Pa. Filed Oct. 23, 2018) 19 (the “PA Case”). While this order resolves several motions currently before the Court,1 it 20 focuses on Defendant’s motion for summary judgment arguing this case is barred under 21 the doctrine prohibiting claim splitting (“Motion”).2 (ECF No. 54.) Because the Court agrees 22 with Defendant this case is barred under the anti-claim splitting doctrine,3 and as further 23

24 1(ECF Nos. 9, 10, 17, 21, 51, 55.) The Court also reviewed the responses, replies, and related errata corresponding to these motions. (ECF Nos. 16, 19, 20, 22, 26, 28, 29, 25 31, 32, 38, 50, 52, 53, 56, 58.)

26 2Plaintiff filed a response (ECF No. 57), and Defendant replied (ECF No. 60).

27 3The Court uses the phrasing ‘anti-claim splitting doctrine’ though some other courts call it the claim splitting doctrine or the prohibition on claim splitting because the 28 caselaw makes clear claim splitting is undesirable, and the doctrine is meant to discourage 2 and dismiss this case. 3 II. BACKGROUND 4 A. Factual Background 5 Plaintiff filed the PA Case against Defendant in October 2018, and this case in 6 September 2019. The parties and factual allegations in the complaints in both cases are 7 the same. (Compare ECF No. 1 with ECF No. 54-2.) More specifically, and to provide the 8 factual background for this case, the Court describes below the material facts alleged in 9 each complaint. 10 Plaintiff entered into a written agreement—“Vendor Agreement”—with Defendant 11 to provide bullets to Defendant packaged and branded as “Field and Stream,” a brand 12 owned by Defendant. (ECF No. 1 at 3-4; ECF No. 54-2 at 2.) Relying on the Vendor 13 Agreement, Plaintiff purchased nearly $4.5 million worth of bullets. (ECF No. 1 at 4; ECF 14 No. 54-2 at 3-4.) Plaintiff expected Defendant to take delivery of these bullets in November 15 2016, but Defendant did not take delivery of them until August 2017. (ECF No. 1 at 4-5; 16 ECF No. 54-2 at 3.) Plaintiff’s claims arise from Defendant’s delayed acceptance of 17 delivery of the bullets. 18 As a result of the delay, Defendant did not pay Plaintiff when Plaintiff expected to 19 be paid. That also meant that Plaintiff had to hold onto all of the bullets in the meantime. 20 This, in turn, caused Plaintiff to incur costs it would not have otherwise incurred. (ECF No. 21 1 at 5; ECF No. 54-2 at 4-5.) 22 Plaintiff also alleges that later, when Defendant did pay Plaintiff, Defendant did not 23 pay Plaintiff the full amount it expected to be paid, because Defendant applied certain 24 chargebacks and an allegedly inapplicable discount to the amounts it paid Plaintiff. (ECF 25 No. 1 at 5; ECF No. 54-2 at 4-5.) Moreover, Plaintiff alleges Defendant required it to take 26

27 it. See, e.g., Adams v. California Dep’t of Health Servs., 487 F.3d 684, 689 (9th Cir. 2007) (mentioning the “doctrine against claim-splitting”). 28 2 of the bullets in November 2016. (ECF No. 1 at 5; ECF No. 54-2 at 5.) Plaintiff thus alleges 3 it incurred damages of inappropriate discounts totaling $108,462, chargeback deductions 4 of $14,608, warehousing costs of $45,125, and insurance premium costs of $32,743. (ECF 5 No. 1 at 5; ECF No. 54-2 at 5.) 6 Moreover, Plaintiff alleges that it made a deal to sell 12 Bell helicopters to the 7 government of Lebanon around the same time, from which Plaintiff would have profited 8 $5,224,000, but Plaintiff was unable to sell the helicopters to Lebanon because the capital 9 it needed for that deal was tied up in the bullets it was warehousing for Defendant. (ECF 10 No. 1 at 8-9; ECF No. 54-2 at 5-7.) Plaintiff therefore also sought, or seeks, lost profits 11 damages of $5,224,000. (ECF No. 1 at 8-9; ECF No. 54-2 at 5-7.) The parties refer to 12 these damages as the ‘Helicopter Damages.’ For ease of reference, the Court will as well. 13 While both cases share these common factual allegations, Plaintiff brings slightly 14 different claims in the two cases. In the PA Case, Plaintiff sued Defendant for breach of 15 contract, fraudulent inducement, and negligent misrepresentation. (ECF No. 54-2 at 9-11.) 16 Plaintiff later amended its claims in the PA case to include a claim of a violation of the 17 Restatement (Second) of Torts § 552. (ECF No. 54-3 at 14-15.) As mentioned supra, in 18 this case, Plaintiff brings claims for fraud in the inducement and violation of the NDTPA, 19 and seeks to represent a class of other vendors it suspects were similarly mistreated by 20 Defendant. (ECF No. 1.) 21 B. Procedural History 22 The procedural history of the PA Case is also important here. First, on Defendant’s 23 motion (ECF No. 54-4), United States District Judge Nora Barry Fischer of the Western 24 District of Pennsylvania dismissed all of Plaintiff’s claims except the breach of contract 25 claim on May 3, 2019 (ECF Nos. 54-7, 54-8). In pertinent part, Judge Fischer found that 26 Pennsylvania law governed the relationship between the parties per the terms of the 27 Vendor Agreement, Plaintiff’s non-contractual claims were barred because the duties 28 Defendant allegedly breached were created by the express terms of the parties’ contract 2 consequential, and lost profit damages (including the Helicopter Damages) on its breach 3 of contract claim were barred by the terms of the Vendor Agreement. (ECF No. 54-7 at 8- 4 17.) Second, after first filing a proposed second amended complaint without the requisite 5 motion accompanying it, Plaintiff filed a motion for leave to amend its complaint, primarily 6 to add class action allegations. (ECF No. 54-9 (proposed second amended complaint), 7 54-10, 54-11, 54-12, 54-13.) Judge Fischer denied Plaintiff’s motion to amend on October 8 22, 2019 because it was untimely, and she found that Plaintiff failed to demonstrate good 9 cause to excuse its late filing. (ECF No. 54-14 at 6-9.) She wrote in pertinent part that 10 Plaintiff’s “untimely actions in seeking leave to add the class action claims are, at best, 11 attributable to attorney error or legal strategy such that neither diligence nor good cause 12 have been shown.” (Id. at 7.) She also noted that Plaintiff conceded “that it knew about 13 the potential class action claims from the beginning of this litigation [in the fall of 2018] and 14 concedes that it failed to adhere to this Court’s September 1, 2019 deadline to file motions 15 for leave to amend and add new parties.” (Id.) 16 Third, Defendant filed a motion to enjoin Plaintiff from proceeding with this case 17 under the first filed rule in the PA Case. (ECF No. 54-15 at 2.) Judge Fischer denied that 18 motion on February 4, 2020.4 (Id.) She found that “Defendant has failed to meet its burden 19 that this Court should exercise its discretionary power under the first filed rule to issue the 20 extraordinary relief of an injunction barring Plaintiff” from prosecuting this case.

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Battle Born Munitions Inc v. Dick's Sporting Goods Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/battle-born-munitions-inc-v-dicks-sporting-goods-inc-nvd-2020.