Brandywine Mushroom Co. v. Hockessin Mushroom Products, Inc.

682 F. Supp. 1307, 1988 U.S. Dist. LEXIS 2807, 1988 WL 30207
CourtDistrict Court, D. Delaware
DecidedMarch 18, 1988
DocketCiv. A. 86-138 JJF
StatusPublished
Cited by6 cases

This text of 682 F. Supp. 1307 (Brandywine Mushroom Co. v. Hockessin Mushroom Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandywine Mushroom Co. v. Hockessin Mushroom Products, Inc., 682 F. Supp. 1307, 1988 U.S. Dist. LEXIS 2807, 1988 WL 30207 (D. Del. 1988).

Opinion

OPINION

FARNAN, District Judge.

Brandywine Mushroom Company (“Bran-dywine”) has brought this action against defendants Hockessin Mushroom Products, Inc. (“Hockessin”), Eileen DiFelice (“DiFel-ice”), and Donald DeTurk (“DeTurk”) for breach of contract, trademark infringement, unfair competition, tortious interference, and several other claims related to the prior business dealings between the parties. Defenant DiFelice has moved for summary judgment on all counts against her. Defendant Hockessin moves for summary judgment on Count II of plaintiff’s complaint which alleges that Hockessin breached a contract to supply and can mushrooms. The Court will deny both motions for the reasons set forth below.

FACTS

Plaintiff Brandywine Mushroom Company is a Pennsylvania corporation that sells canned mushrooms under the trademark name BRANDYWINE and under the private labels of its customers. The BRAN-DYWINE trademark was registered on March 22, 1949 with the United States Patent & Trademark Office for use in connection with the sale of canned mushrooms. Plaintiff claims that it is the sole owner of the BRANDYWINE trademark and that the trademark is still valid. Defendant Hockessin Mushroom Products is a Delaware corporation engaged in the business of selling and canning mushrooms. Defendant Eileen DiFelice is the Vice President of Hockessin, a member of the Board of Directors, 1 and a shareholder.

*1309 In June, 1982, Alfred E. Fortugno, a director of Brandywine, allegedly entered into an agreement with defendant DiFelice which provided for Brandywine to purchase its requirement of mushrooms from Hockessin. Pursuant to this unwritten agreement, Brandywine would deliver the BRANDYWINE trademark labels and customers’ private labels to Hockessin who would place the labels on the canned mushrooms purchased by Brandywine.

The third defendant in this action, Donald DeTurk, was hired as Brandywine’s sales manager in September, 1983. According to the plaintiff, DeTurk was responsible for promoting Brandywine label sales and private label sales to Brandy-wine’s customers and food brokers. De-Turk apparently became dissatisfied with his position as sales manager and decided in September, 1984 that he would leave Brandywine. DeTurk did not communicate his desire to leave Brandywine until January, 1985 at which time he either resigned as sales manager or was fired. DeTurk then began employment as Hockessin’s sales manager on January 21, 1985.

Plaintiff contends that in November, 1984 defendant DiFelice, acting individually and on behalf of Hockessin, requested that defendant DeTurk, in his capacity as Bran-dywine’s sales manager, divert mushroom orders from Brandywine to Hockessin. In return for this diversion of Brandywine’s business, defendant DiFelice allegedly promised to reward DeTurk with a sales position with Hockessin. DeTurk, while still employed as Brandywine’s sales manager, allegedly informed some of Brandy-wine’s sales representatives and customers that Hockessin was a division of Brandy-wine and that their orders should be sent directly to Hockessin. As a result of this activity between the three defendants, plaintiff asserts that Hockessin was able to divert a substantial number of orders for both Brandywine’s trademark mushrooms and private label mushrooms. Hockessin allegedly sold its own mushrooms to Bran-dywine’s customers and charged Brandy-wine’s higher prices. According to the plaintiff, Hockessin also sold canned mushrooms bearing Brandywine’s trademark to Brandywine and Hockessin customers without consent or authorization from Brandy-wine.

In addition to this alleged diversion of orders, Brandywine avers that in November, 1984 defendant Hockessin breached its agreement with Brandywine by failing to provide enough canned mushrooms to fill Brandywine’s customer orders. Also, Brandywine asserts that in June, 1985, defendant DiFelice and defendant Hockessin unjustifiably refused to release a lien on Brandywine’s assets. Brandywine claims that, because of Hockessin’s refusal to release the lien, it cannot obtain necessary financing and has been forced to shut down its sales of canned mushrooms.

In December, 1986, Brandywine filed its nine count amended complaint listing as defendants Hockessin Mushroom Products, Eileen DiFelice, individually, and Donald DeTurk, individually, however, for purposes of Hockessin’s motion for partial summary judgment, the Court is only concerned with Count II which alleges breach of contract by defendant Hockessin. In considering defendant DiFelice’s summary judgment motion, the Court must examine Counts V through IX, which lists DiFelice as a defendant in her individual capacity.

DISCUSSION

A. DiFelice’s Motion for Summary Judgment

In order to grant a motion for summary judgment, the Court must determine that “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). In Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986), the Supreme Court most recently discussed the circumstances under which a Rule 56 motion for summary judgment should be granted. The Supreme Court stated:

[T]he plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who *1310 fails to make a showing sufficient to establish the existence of an element essential to that party’s burden of proof at trial. In such a situation, there can be “no genuine issue as to any material fact,” since a complete failure of proof concerning an essential element of the nonmoving party’s case necessarily renders all other facts immaterial.... [T]h[e] standard [for granting summary judgment] mirrors the standard for a directed verdict under Federal Rule of Civil Procedure 50(a).

Id. 106 S.Ct. at 2552-53 (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986)). With this standard in mind, the Court must examine the evidence supporting the plaintiff’s individual claims against defendant DiFelice.

In Counts V through IX of its complaint, plaintiff asserts claims for unfair competition, trademark infringement, deceptive trade practices, and tortious interference against defendants Hockessin, Eileen Di-Felice, and Donald DeTurk. Defendant Di-Felice argues in her motion for summary judgment that, even assuming that Counts V through IX state a claim upon which relief can be granted, the plaintiff has failed to adduce sufficient evidence to hold her individually liable.

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Cite This Page — Counsel Stack

Bluebook (online)
682 F. Supp. 1307, 1988 U.S. Dist. LEXIS 2807, 1988 WL 30207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandywine-mushroom-co-v-hockessin-mushroom-products-inc-ded-1988.