Burst v. Adolph Coors Co.

503 F. Supp. 19
CourtDistrict Court, E.D. Missouri
DecidedJune 17, 1980
Docket79-1372C(B)
StatusPublished
Cited by4 cases

This text of 503 F. Supp. 19 (Burst v. Adolph Coors Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burst v. Adolph Coors Co., 503 F. Supp. 19 (E.D. Mo. 1980).

Opinion

503 F.Supp. 19 (1980)

Leonard H. BURST et al., Plaintiffs,
v.
ADOLPH COORS COMPANY, a Colorado Corporation, Defendant.

No. 79-1372C(B).

United States District Court, E. D. Missouri, E. D.

June 17, 1980.

*20 Thomas B. Curtis, Clayton, Mo., for plaintiffs.

Alan C. Kohn, St. Louis, Mo., for defendant.

MEMORANDUM OPINION

REGAN, District Judge.

This matter is before the Court on motion of defendant to dismiss or in the alternative for summary judgment. We rule the motion on the basis of the admitted facts alleged in the complaint, the exhibits, the uncontroverted affidavit submitted by defendant and plaintiffs' suggestions in opposition to the motion.

Defendant, a Colorado corporation, with its only brewery in Golden, Colorado, is the fifth largest brewer of beer in this country. On August 19, 1977, in response to a news release by defendant, plaintiffs, acting through Leonard H. Burst, submitted a letter to the president of defendant "expressing an interest in a distributorship," following which plaintiffs' group was "placed on file as a prospective applicant for a Coors distributorship." About September 16, 1977 plaintiffs received the requested application forms with detailed instructions for the preparation of the application and Coors' "Basic Distributor Selection Guidelines."

At the time defendant had finalized its decision in the late summer of 1977 to expand its beer distribution into Missouri, it had on file approximately 1,600 prospective applicants for this state and each of them was mailed formal application forms. In the early fall of 1977, 379 of these application forms were completed and returned to defendant. The state of Missouri had been divided by defendant into 13 separate geographical areas and applicants were requested to make application only for one specific area other than Area No. 11, South St. Louis, which would be operated by Coors Distributing Company. A total of 35 applicants (including plaintiffs) were submitted for Area No. 10, North St. Louis.[1] Four of these applicants received field interviews at a St. Louis hotel, one of these interviews being of plaintiffs Leonard Burst and Douetta Burst Davis on December 5, 1977. Subsequently, a further meeting was scheduled in the sales department of defendant in Golden, Colorado on January 19, 1978, in connection with which plaintiffs were requested to (and did) present additional information (financial statements and letters of reference). Only those applicants who received the highest ratings at the initial field interviews were invited to Golden, Colorado for further interviews. Plaintiffs were the only applicant for Area No. 10 North St. Louis who were granted the second interview. Thereafter, about February 7, 1978, plaintiffs' application was rejected. About 2 months later, plaintiffs' application data was returned to them. None of the original applicants for Area No. 10 was awarded that distributorship. Instead, defendant determined that until a "suitable" applicant could be found, its wholly owned subsidiary, Coors Distributing Company, would handle the distribution of Coors' products in Area No. 10 in addition to Area No. 11. In early 1979, defendant awarded the distributorship for the City of St. Louis to United City Distributors. Coors Distributing Company serves the remaining portions of Areas Nos. 10 and 11.

Plaintiffs' claim, as to Count I, is based on defendant's alleged failure to comply with its "Basic Distributor Selection Guidelines," *21 as the result of which plaintiffs were allegedly caused to expend money, time and effort in making a "first class application presentation" to Coors. They rely on the following portions of the Guidelines:

"2. Applicants may apply originally for only one area. The Brewery Interview Committee, however, will appoint for each area only an applicant(s) they feel, in their judgment, is fully qualified. Should the committee determine that there are no qualified applicants for one area and/or a better qualified applicant(s) is available from another area, they will appoint the one best qualified. Applicants should be aware that they are competing with all applicants on file for a given state, and these do not necessarily have to be residing in the area. In situations where qualifications are equal, preference will be given to the applicant(s) that applied for the area and resides in the area involved."
"5. The following are not eligible under any conditions:
a. Employees of the Adolph Coors Company.
b. Coors Distributors, including stockholders and officers, unless such stockholders or officers coincidently sever their relationship with present distributor in a Coors Distributorship.
c. No Coors Distributor will have any financial interest in any Coors Distributorship other than his own, excepting any agreements, arrangements, or financial contracts made prior to September 1, 1966."

The Guidelines caution applicants that only one appointment can be made for each area and that although time, effort and travel will be required to complete a presentation, "the only assurance that [Coors] can give each applicant is fair and equal consideration." The following procedure in arriving at a selection decision is set forth in the Guidelines:

"Written presentations are evaluated twice and then reviewed by the Expansion Manager. From these two evaluations and review, qualified applicants are scheduled for a field interview. Each field interview team consists of two Company representatives. The interview team reviews the applicant's written presentation, conducts a ninety minute field interview, records the interview, and prepares a written evaluation of the information presented by each applicant(s). At the conclusion of each day's interviews, the combined interview teams meet and discuss in detail each interview and the evaluation. Applicants are selected for brewery interviews from these in-depth reviews. Brewery interviews are conducted and the selection decision is made by the Brewery Interview Committee only after extensive consideration and this decision is final."

In their Suggestions in opposition to defendant's motion, plaintiffs argue that Count I is not grounded upon fraud, but is based on the theory of promissory estoppel. Accordingly, we rule the motion on that premise. The parties are in agreement that Missouri follows the doctrine of promissory estoppel as stated in § 90 of the Restatement of Contracts, and as applied in Debron Corporation v. National Homes Construction Corporation, 8 Cir. 1974, 493 F.2d 352:

"A promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise."

It is self-evident that the doctrine has no application absent, initially, (in the language of Debron, supra) "A binding offer in the form of a promise." What, then, was the promise in the Guidelines which defendant should reasonably have expected to induce action "of a definite and substantial character on the part of plaintiffs"? Of importance is the fact that plaintiffs' application was but one of 35 seeking the Area No. 10 distributorship.

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