Belden-Hutter, Inc. v. RB International, Inc.

CourtDistrict Court, N.D. Ohio
DecidedJune 24, 2024
Docket5:23-cv-02209
StatusUnknown

This text of Belden-Hutter, Inc. v. RB International, Inc. (Belden-Hutter, Inc. v. RB International, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belden-Hutter, Inc. v. RB International, Inc., (N.D. Ohio 2024).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

BELDEN-HUTTER, INC., ) CASE NO. 5:23-cv-2209 ) ) PLAINTIFF, ) CHIEF JUDGE SARA LIOI ) vs. ) MEMORANDUM OPINION ) AND ORDER R.B. INTERNATIONAL, INC. ) ) ) DEFENDANT. )

By order dated March 12, 2024, following a case management conference in which both parties agreed that this dispute is governed by an unambiguous contract, the Court directed the parties “to file simultaneous motions regarding the meaning and scope of all pertinent provisions of the parties’ governing contract (Doc. No. 1-1) that are needed to address the issues in dispute.” (Doc. No. 18 (Briefing Order), at 1.1) Specifically, the parties were instructed to “address when the contract required the defendant to pay commissions to the plaintiff for different types of sales,” as well as “any other disputed provision(s) of the contract that might have a bearing in resolving the issues in this case.” (Id.) Before the Court are the simultaneous motions submitted by each party. (Doc. Nos. 19 (Plaintiff’s Motion) and 20 (Defendant’s Motion).2) Both parties also submitted responses. (Doc.

1 All page number references herein are to the consecutive page numbers applied to each individual document by the Court’s electronic filing system. 2 Belden-Hutter styled its brief as a motion for order and, although RBI styled its brief as a motion for judgment on the pleadings, the Court also construes RBI’s brief as a motion for order. Nos. 21 (Plaintiff’s Response) and 22 (Defendant’s Response).) The matter is now ripe for the Court’s disposition. I. BACKGROUND Defendant R.B. International, Inc. (“RBI”) “manufactures industrial products, primarily consisting of ball bearings, for use in industries including food and beverage, steel manufacturing,

and construction.” (Doc. No. 12 (Answer) ¶ 4.) Effective June 4, 2019, RBI hired plaintiff Belden- Hutter, Inc. (“Belden-Hutter”) as a commissioned sales representative for a particular territory. (Id. ¶ 6; see also Doc. No. 1-1.) This action arises from RBI’s alleged “fail[ure] to pay commissions or to provide complete or accurate sales information to Belden-Hutter.” (Doc. No. 1 (Complaint) ¶ 13.) The parties agree on several preliminary issues. First, the parties agree that their relationship, and therefore this dispute, is governed by contract. (See generally Doc. Nos. 19, 20.) Second, the parties agree that the relevant contract was validly amended twice, but also that the provisions at issue here are “identical” across all three iterations. (See Doc. No. 19, at 2 n.1; Doc.

No. 20, at 8 n.1.) Accordingly, the Court follows the lead of the parties and refers to the various iterations of the contract collectively as the “Agreement.” (Id.) Third, although the Agreement does not contain a choice of law provision, the parties agree that it should be construed under Ohio law. (See Doc. No. 20, at 11; Doc. No. 19, at 4.) Fourth, both parties insist that the Agreement is clear and unambiguous, although they present diametrically opposed interpretations of its terms. (See Minutes of Proceeding [non-document], March 12, 2024.) Turning to the Agreement, the first paragraph, titled “Exclusive Representative,” states: Principal [i.e., RBI] grants to Agent [i.e., Belden-Hutter] the exclusive right (to the exclusion of Principal and all claiming under or through Principal), by acting as Principal’s sales representative, to solicit orders for the Principal’s goods, equipment and/or services __ (See exhibit A) __ (Products) within the following geographical or otherwise defined area. __ (See exhibit B) __ (Territory) Agent agrees not to represent another manufacturer within the defined area whose product or service is directly competitive to Principal.

(Doc. No. 1-1 ¶ 1.) The Agreement also defines the parties’ relationship, stating that Belden-Hutter “is not an employee of Principal, but is an independent contractor” (id. ¶ 5), and that RBI alone sets the price and terms of any sale. (Id. ¶ 2.) The Agreement likewise makes clear that “[o]rders for Products within the Agent’s territory shall be subject to acceptance by Principal” (id. ¶ 3), and that Belden-Hutter “does not have any right, power or authority to create any contract or obligation, either expressed or implied on behalf of [RBI].” (Id. ¶ 5.) The third paragraph, titled “Orders and Collections,” contains a provision obligating RBI “to refer and/or copy agent on all inquiries, and promptly furnish Agent with copies of all correspondence and pertinent documents between Principal and Customer.” (Id. ¶ 3.) This paragraph further states that “[a]ll invoices shall be rendered by Principal to Customer, with copies to Agent,” and that “[r]esponsibility for collection rests with Principal; however Agent agrees to assist Principal with collection when appropriate.” (Id.) Exhibit A to the Agreement identifies the RBI products for which Belden-Hutter was permitted to solicit orders, which includes all “RBI Product Lines excluding cam followers and track rollers.” (Id. at 4.) The Agreement also contains a standalone paragraph reinforcing this point, stating that Belden-Hutter “will not be permitted to sell cam followers or track rollers manufactured by [RBI].” (Id. ¶ 9.) As for commissions, the fourth paragraph of the Agreement provides that “[t]he commission payable to Agent on orders from the Agent’s territory shall be deemed earned by agent upon acceptance or delivery of an order by Principal, whichever occurs first.” (Id. ¶ 4.) The paragraph then explains how commission payments are calculated, and states that Belden-Hutter is entitled to a “Split Commission” if the order “originat[ed] from one Agent’s territory for shipment into another Agent’s territory,” but that Belden-Hutter’s commission would not be split “when shipment is made into a territory without another Agent.” (Id.) Lastly, the paragraph provides that “[a]ll commissions due agent for sales in Agent’s territory shall be paid on the 10th of the month, immediately following Principal’s receipt of payment from the customer.” (Id.)

Finally, paragraph six states the term of the Agreement and the process for terminating the contract, and conditions that “[i]f the agreement is terminated, all orders received and accepted by Principal from Agent’s territory prior to effective date of termination will be due commission as given in Paragraph Four regardless of when orders are shipped or invoices rendered.” (Id. ¶ 6.) As noted above, the parties agree that these are the relevant contractual terms, that Ohio law governs, and that the Agreement is clear and unambiguous. (See Minutes of Proceeding [non- document], March 12, 2024.) The parties disagree, however, as to what these allegedly clear and unambiguous terms mean. (Id.) Specifically, the parties dispute what Belden-Hutter was contractually obligated to do, if anything, to receive commission on sales for applicable products

within its exclusive territory while the Agreement was in effect. (Id.) Belden-Hutter contends that it was entitled to commission on “all orders of defined products from [its] exclusive territory, regardless of its involvement” in the sale. (Doc. No. 19, at 5.) Belden-Hutter grounds its argument in the plain language of the Agreement, which grants it an “exclusive right (to the exclusion of Principal and all claiming under or through Principal) . . . to solicit orders” of certain RBI products within a defined geographic area. (Id. at 5–6 (citing Doc. No. 1-1).) RBI disagrees and asserts that the Agreement does require Belden-Hutter to take some action before it can earn a commission. According to RBI, the Agreement “merely gives Belden- Hutter the exclusive right to ‘solicit orders’ in an assigned territory” (Doc. No.

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Bluebook (online)
Belden-Hutter, Inc. v. RB International, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/belden-hutter-inc-v-rb-international-inc-ohnd-2024.