C A M Logistics L L C v. Pratt Industries Inc

CourtDistrict Court, W.D. Louisiana
DecidedOctober 26, 2022
Docket1:20-cv-00445
StatusUnknown

This text of C A M Logistics L L C v. Pratt Industries Inc (C A M Logistics L L C v. Pratt Industries Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C A M Logistics L L C v. Pratt Industries Inc, (W.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA ALEXANDRIA DIVISION

CAM LOGISTICS, L.L.C. CASE NO. 1:20-cv-445 ~Vs- JUDGE DRELL PRATT INDUSTRIES, INC. ET AL. MAGISTRATE JUDGE PEREZ-MONTES

MEMORANDUM RULING AND ORDER Before the court is a motion for partial summary judgment, (Doc. 75), filed by Plaintiff CAM Logistics, L.L.C. (“CAM”) to find Defendant Pratt (Rockwall Corrugating), L.L.C. (“Rockwall”) liable for breach of contractual obligations to CAM. For the reasons outlined below, we will DENY the motion for partial summary judgment. 1. BACKGROUND While this court is located far from the bright lights of New York City’s eponymous theatre cluster along Broadway, sufficient understanding of the “main characters” central to this case is helpful, perhaps not unlike what an arts patron would have in the form of a playbill: CAM Logistics, L.L.C.: A limited liability company whose sole member, Susan Stedman, is domiciled in Ohio. The company. specializes in supply chain services and solutions, including freight shipment and warehousing. (Doc. 1). Patrick Shea: Vice President of CAM who is domiciled in the state of Ohio. (Doc. 75-3). Pratt Industries, Inc.: A corrugated packaging company incorporated in Delaware and has a principal place of business in Georgia. (Doc. 1). Pratt (Rockwall Corrugating), L.L.C.: A limited liability company whose sole member is Pratt Corrugated Holdings, Inc.—a subsidiary of Pratt Industries, Inc.—which is also incorporated in Delaware and has a principal place of business in Georgia. Rockwall operates a facility in Rockwall, Texas that produces recycled paper and corrugated paper packaging. (Doc. 75-1).

Richard Turner: A strategic account manager employed by a company called Pratt (Jet Corr), Inc.—a separate Delaware company with its corporate headquarters in Georgia that is affiliated with Pratt and Rockwall. (Doc. 77-1). John Batts: General manager at Rockwall. (Doc. 77-2). England Economic and Industrial Development District: Warehouse owner and logistics services provider based in Alexandria, Louisiana. (Doc. 75-1). In fair Detroit, Michigan, where we lay our scene, Richard Turner (“Mr. Turner”) and Patrick Shea (“Mr. Shea”) met at a conference targeting minority and women business enterprises in October 2017. (Doc. 1). Mr. Shea shared with Mr. Turner that he worked with CAM—a supply chain and logistics company that provides, among other things, warchousing services. Mr. Turner informed Mr. Shea that his employer’s parent company, Pratt Industries, Inc. (“Pratt’’), had recently earned new business from Procter & Gamble Company (“P&G”). (Doc. 75-1). One of

Pratt’s affiliate entities, Rockwall, would supply corrugated packaging material to a P&G supplier in Pineville, Louisiana. Mr. Turner managed: Pratt’s relationship with P&G and shared with Mr. Shea his needs for a warehouse in central Louisiana to facilitate the new business award. (Doc. 75- 1). Rockwall needed the warehouse space in central Louisiana to store the corrugated packaging material it manufactured in Texas for shipment to the Pineville-based P&G supplier. (Docs. 77, 77-2), Following the conference, Mr. Turner referred CAM (and other supply chain companies) to Rockwall’s general manager, John Batts (“Mr. Batts”), for consideration. Mr. Batts ultimately decided to pursue discussions with CAM. (Doc. 77-1). On October 24, 2017, Mr. Shea emailed Messrs. Turner and Batts, to determine Rockwall’s warehousing needs and to furnish a quote upon receipt of a response. (Doc. 75-4). Mr. Turner, on behalf of Pratt, replied to that message with a “snapshot” outlining overviews for the corrugated packaging materials’ supply chain, the warehouse needs, and basic contract provisions, including an anticipated contract term spanning from January 1, 2018 to December 31, 2020. (Doc. 75-4).

On December 1, 2017, Mr. Shea responded on behalf of CAM with monthly rates for Rockwall’s warehousing needs that increased from the first year to the second year and remained stable from the second year into the third year of the contract.! (Doc. 75-4). Unsatisfied with the quote for warehouse services, Mr. Batts reentered price negotiations with Mr. Shea. (Doc. 75-1). On December 6, 2017, Mr. Shea agreed to reduce CAM’s pricing by approximately 5%, and Mr. Batts accepted on Rockwall’s behalf. (Doc. 15-3), On December 11, 2017, Mr. Shea sent a draft of CAM?’s warehousing and logistics service agreement to Mr. Batts for Rockwall’s general counsel to review (the “December 11, 2017 Draft”). (Doc. 75-7). Shortly thereafter, Mr. Shea claims to have informed Mr. Batts of CAMs need to lease warehousing space in the Alexandria, Louisiana area to meet Rockwall’s warehousing needs. (Doc. 75-3). Mr. Shea ran into a problem while negotiating the leasing agreement with the warehouse owner, England Economic and Industrial Development District (“EEIDD”) and turned to Messrs. Turner and Batts for assistance. (Docs. 75-1, 75-8). Mr. Turner responded to Mr. Shea’s message with talking points that could be used in its discussions with EEIDD but noted that P&G—which made the business award to Pratt— would not be able to issue a written statement due to “numerous levels of approval” needed. (Doc. 75-8). By late December 2017, Mr. Shea successfully negotiated the remaining terms of the lease with EEIDD for CAM and fully executed the agreement on January 18, 2018. (Doc. 75-9). Months later, on April 24, 2018, Mr. Batts emailed Rockwall counsel’s markup of CAM’s original warehousing and logistics services agreement (“April 24, 2018 Draft”) to Mr. Shea, which included, among other edits: (1) a choice of law clause naming Delaware state law as controlling for disputes arising from the contract; and (2) a forum selection clause placing any disputes

' According to the emai! from Mr. Shea to Messrs. Turner and Batts, the increase from the first year to the second year resulted from an expected 20,000-square-foot increase in warehouse space from 40,000 square feet to 60,000 square feet). (Doc. 75-4).

regarding the contract before the proper court—state or federal—in Delaware. (Doc. 75-14), On May 18, 2018, Mr. Batts followed up with Mr. Shea on the April 24, 2018 Draft stating that Rockwall “needed to get [the contract] put to bed.” (Doc. 77). In the end, neither representative from CAM nor Rockwall signed the December 11, 2017 Draft or the April 24, 2018 Draft of the warehousing and logistics services agreement or any other contract. (Docs. 75-1, 77). During the summer of 2019, Mr. Batts claims to have informed Mr. Shea of changes at P&G that would no longer require Rockwall’s use of CAM’s warehouse services. (Doc. 77-2). Mr. Turner alleges to have alerted Mr. Shea of the same changes in November 2019. (Doc. 77-1). In March 2020, Rockwall informed CAM that it no longer needed CAM’s warehousing services and that beginning May 1, 2020, Rockwall would no longer pay the monthly service fee of $49,928.69. (Docs. 75-1, 77). Rockwall paid the monthly service fee to CAM for warehousing and logistics services from January 2018 to April 2020. (Doc. 75-13). Despite the originally contemplated increase in the monthly fee from $49,928.69 in 2018 to $55,728.66 in 2019 and 2020, Rockwall’s payment to CAM never reflected such an increase. (Doc. 75-13). Additionally, the record does not reflect an increase in warehouse square footage from 40,000 in 2018 to 60,000 in 2019 and 2020, as printed in the April 24, 2018 Draft. (Doc. 75-14). Plaintiff filed this suit with our court on April 9, 2020, citing diversity jurisdiction, because CAM’s sole member, Susan Stedman, is domiciled in Ohio, while Defendants Pratt and Rockwall’s sole member, Pratt Corrugated Holdings, Inc., are incorporated in Delaware and have a principal place of business in Georgia. (Doc. 1).

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