Brewfab, LLC v. 3 Delta, Inc.

CourtDistrict Court, M.D. Florida
DecidedJanuary 14, 2022
Docket8:20-cv-02031
StatusUnknown

This text of Brewfab, LLC v. 3 Delta, Inc. (Brewfab, LLC v. 3 Delta, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brewfab, LLC v. 3 Delta, Inc., (M.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

BREWFAB, LLC,

Plaintiff,

v. Case No. 8:20-cv-2031-VMC-SPF

3 DELTA, INC., and GEORGE RUSSO,

Defendants. /

ORDER This matter comes before the Court upon consideration of Defendant George Russo’s Motion for Summary Judgment (Doc. # 75) and Plaintiff BrewFab, LLC’s Cross-Motion for Summary Judgment (Doc. # 76), filed August 5, 2021, and August 26, 2021, respectively. The parties have responded and replied to each Motion. (Doc. ## 81-82). For the reasons set forth below, BrewFab’s Motion is granted, and Russo’s Motion is denied. I. Background The parties each seek summary judgment exclusively on Count II of BrewFab’s Amended Complaint —Russo’s alleged breach of personal guaranty. (Doc. # 30; Doc. ## 75-76). George Russo is the President of 3 Delta, Inc. (Doc. # 76-2 at 14). 3 Delta was formed to develop a water-based CBD oil extraction machine, which could have applications in the sport and health product industries. (Doc. # 76-3 at ¶¶ 3-4; Doc. # 76-10 at 47:1-48:20). Russo and other investors financed 3 Delta’s operations while VP/Chief Science Officer Michael Turcotte led the design and development of the machinery. (Doc. # 76-10 at 54:16-55:21). According to Chief Engineer Michael Zumpano, Russo was known on occasion to

transfer funds from his personal accounts to 3 Delta’s business accounts. (Doc. # 76-14 at 195:4-25; 196:1-2). In 2018, 3 Delta hired BrewFab, a “brewery equipment provider and metal fabricator,” to develop its concept machinery. (Doc. # 30 at ¶¶ 8-9; Doc. # 76-3 at ¶ 3-4). Turcotte worked with BrewFab at its St. Petersburg, Florida facility to build 3 Delta’s machinery. (Doc. # 76-3 at ¶ 4). The parties agree that there was no formal contract in place with respect to the development of 3 Delta’s machinery. (Doc. # 76-3 at ¶ 4; Doc. # 81-2 at ¶ 3). The parties instead proceeded under an oral agreement, wherein

BrewFab would provide 3 Delta invoices for work performed that 3 Delta would pay in turn. (Doc. # 76-3 at ¶ 4). The first invoice was issued to 3 Delta in December 2018. (Id.). The parties continued to collaborate and develop 3 Delta’s machinery under the oral agreement until December 2019. (Id. at ¶¶ 5-6). Around that time, 3 Delta ceased paying BrewFab’s invoices. (Id. at ¶ 7). Without assurance for payment for past work or confidence in future payments, BrewFab ceased working and withheld shipment of certain equipment. (Id. at ¶¶ 7-8). The parties ultimately deadlocked — 3 Delta pressed BrewFab to continue working and deliver promised equipment, while BrewFab insisted that 3 Delta pay

its outstanding invoices first. (Id. at ¶¶ 7-9). BrewFab co- owner Kyle Cureton sent Mr. Turcotte and other 3 Delta employees an email on January 23, 2020, affirming BrewFab would not continue to ship equipment until 3 Delta paid its outstanding invoices. (Doc. # 76-4). BrewFab provides a host of text messages and email communications between 3 Delta and BrewFab spanning from December 2019 to August 2020. (See generally Doc. # 76). To resolve the issue, the parties held a conference call on January 30, 2020. (Doc. # 81-2 at ¶¶ 4-5). The call was attended by Russo, Zumpano, and BrewFab’s president and co-

owner, Rick Cureton. (Doc. # 81-1 at ¶ 4). The parties provide conflicting reports of what was discussed on the call. Russo maintains that the purpose of the call was to address BrewFab’s concerns of continuing work without a written agreement. (Id. at 5). On the other hand, Rick Cureton indicates that the call was to address 3 Delta’s outstanding invoices for work performed and to reiterate that no work would resume until the invoices were paid. (Doc. # 76-3 at ¶¶ 7-9). Rick Cureton attests that while on the call, Russo personally promised to pay 3 Delta’s outstanding and future invoices. (Id. at ¶ 10). Russo vehemently denies making such a promise. (Doc. # 81-1 at ¶¶ 5-7).

Following the conference call, Russo sent Rick Cureton the following text message: As per our conversation on Jan 30th 2020 I george Russo from 3 Delta do promise to pay brew fab in full all outstanding bills as of this date and all agreed upon work done for 3 Delta future forward. I thank you for your patience.

(Doc. # 76-21). Relying on this text message, BrewFab carried on with shipping equipment and developing 3 Delta’s machinery. (Doc. # 76-10 at 92:20-25; 93:1-9). Following BrewFab’s persistence to collect on outstanding invoices, and after continuing to develop 3 Delta’s machinery, 3 Delta instructed BrewFab to halt development on February 12, 2020. (Doc. # 76-3 at ¶ 14). By March 17, 2020, the machinery BrewFab helped fabricate for 3 Delta was in working order. (Doc. # 76-13 at 22:4-23:4). On August 28, 2020, BrewFab filed the instant suit to recover their outstanding invoices issued to 3 Delta, which to date surpass $350,000.00. (Doc. # 1 at ¶ 15). Through the operative Amended Complaint, BrewFab asserts six claims against 3 Delta and Russo. (Doc. # 30). BrewFab asserts claims against 3 Delta for breach of contract, accounts stated, an alternative claim for unjust enrichment, an alternative claim for quantum meruit, and a claim for possessory lien foreclosure. (Id. at 4-8). BrewFab asserts only one claim

against Russo for breach of guaranty. (Id. at 5-6). II. Legal Standard Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A factual dispute alone is not enough to defeat a properly pled motion for summary judgment; only the existence of a genuine issue of material fact will preclude a grant of summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48 (1986). An issue is genuine if the evidence is such that a reasonable jury could return a verdict for the non-moving party. Mize v. Jefferson City Bd. of Educ., 93 F.3d 739, 742

(11th Cir. 1996) (citing Hairston v. Gainesville Sun Publ’g Co., 9 F.3d 913, 918 (11th Cir. 1993)). A fact is material if it may affect the outcome of the suit under the governing law. Allen v. Tyson Foods, Inc., 121 F.3d 642, 646 (11th Cir. 1997). The moving party bears the initial burden of showing the Court, by reference to materials on file, that there are no genuine issues of material fact that should be decided at trial. Hickson Corp. v. N. Crossarm Co., 357 F.3d 1256, 1260 (11th Cir. 2004) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986)). “When a moving party has discharged its

burden, the non-moving party must then ‘go beyond the pleadings,’ and by its own affidavits, or by ‘depositions, answers to interrogatories, and admissions on file,’ designate specific facts showing that there is a genuine issue for trial.” Jeffery v. Sarasota White Sox, Inc., 64 F.3d 590, 593-94 (11th Cir. 1995) (quoting Celotex, 477 U.S. at 324). If there is a conflict between the parties’ allegations or evidence, the non-moving party’s evidence is presumed to be true and all reasonable inferences must be drawn in the non-moving party’s favor. Shotz v.

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