Casey Equipment Corp. v. Armco, Inc.

789 F. Supp. 1347, 1992 U.S. Dist. LEXIS 9191, 1992 WL 99232
CourtDistrict Court, W.D. Pennsylvania
DecidedMay 11, 1992
DocketCiv. A. No. 88-429
StatusPublished

This text of 789 F. Supp. 1347 (Casey Equipment Corp. v. Armco, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Casey Equipment Corp. v. Armco, Inc., 789 F. Supp. 1347, 1992 U.S. Dist. LEXIS 9191, 1992 WL 99232 (W.D. Pa. 1992).

Opinion

MEMORANDUM OPINION

LEWIS, District Judge.

The above-captioned case involves a dispute between plaintiff Casey Equipment Corporation (“Casey”), which acts as a broker in selling equipment and other portions of steel mills, and Armco, Inc. (“Armco”), which hired Casey to sell certain of its equipment. Casey and Armco have filed cross-motions for partial summary judgment concerning only Count I of a four-count amended complaint. The issue presented is a pure question of law— whether, under the terms of the brokerage agreement, Casey is entitled to a commission for the sale of a wide flange mill. For the following reasons, the court will deny Casey’s motion and grant Armco’s motion.

FACTS

On April 1, 1985, Casey and Armco entered into a brokerage agreement whereby Casey agreed to act as Armco’s exclusive agent in selling equipment located at Arm-co’s steel mill facilities in Houston, Texas. See Casey Exhibit Book, Ex. 1 (Contract, § 1.1).

The brokerage contract was to terminate on March 31,1987, two years from the date of its execution, but it was ultimately extended to April 13,1987. Casey and Armco agree that the contract terminated on April 13, 1987.

Section 4.2 of the brokerage contract provides:

At the time of termination of the Agreement, ARMCO shall register as CASEY’S customers, all known potential customers who had inspected and with whom CASEY had direct and specific negotiations concerning the Equipment listed on Exhibit A. CASEY shall be entitled to a commission of seventeen and one-half percent (17-1/2%) on all sales made to such registered customers during the one (1) year period after termination of this Agreement.

Both parties agree that this section entitled Casey to a commission on any sales made to its customers within one year after April 13, 1987, or by April 13, 1988. This commission amount would be in addition to that Casey earned on sales made before April 13, 1987.

One sub-facility of its Houston operation which Armco wished to sell as an entire unit was a wide flange mill. The parties agreed that the sale of the wide flange mill would entitle Casey to a commission of 15%, instead of the 17-1/2% set forth in the brokerage agreement. Otherwise, the sale of the wide flange mill was subject to all other terms of the brokerage contract.

In June of 1986, while Casey’s brokerage contract was in effect, a company called Northwestern Steel & Wire (“NSW”) submitted a letter of intent to Armco, offering to purchase the entire wide flange mill for $23.5 million. Enclosed was a down payment of $1,000,000. Armco rejected this offer.

In July of 1986, still within the brokerage contract period, NSW submitted a second [1349]*1349letter of intent to Armco. Although some of its terms were different from those contained in the first letter of intent, NSW offered the same purchase price and a $1,000,000 down payment in the second letter. Armco accepted this offer.

On June 8, 1987, within the one-year grace period following termination of the brokerage agreement, NSW entered into an option contract with Armco. In the option contract, Armco agreed to extend the date for closing on the sale of the wide flange mill in exchange for $300,000. NSW’s option on the wide flange mill was extended several times, and there may have been times when the option was not in effect.1 It is clear, however, that as of June 22, 1989, an option agreement was in place, because on that date NSW exercised its option and purchased the wide flange mill and equipment.

Casey claims that, by virtue of the brokerage agreement, it is entitled to a 15% commission on $12,000,000 Armco received from the sale of the wide flange mill. Apparently, the cost of the wide flange mill alone, excluding the metal buildings and cranes, was $12,000,000. Armco denies that Casey is entitled to such a commission.

DISCUSSION

A. Applicable Standard

Federal Rule of Civil Procedure 56(c) provides that summary judgment may be granted “if 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 judgment as a matter of law.” Fed.R.Civ.P. 56(c).

When confronted with a motion for summary judgment, it is not the court’s function to weigh the evidence and determine the truth of the matter, but rather simply to determine whether there is a genuine issue of fact for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). An issue is genuine only if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Id..

The moving party has the burden of identifying those portions of pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). The nonmoving party then must go beyond the pleadings and by affidavits, depositions, answers to interrogatories, and admissions on file, designate facts showing that there is a genuine issue for trial. Id. at 324, 106 S.Ct. at 2553.

B. Preliminary Issues

The court must address two preliminary issues before delving into the merits of the parties' motions. First, Armco asserts that Casey’s motion should be denied because it was filed out of time. On September 20, 1989, this court ordered that “defendant’s motion for partial summary judgment shall be filed by November 27, 1989; any motion for summary judgment or partial summary judgment which plaintiff wishes to file shall also be filed by such date." Casey, however, filed its motion for partial summary judgment on January 2,1990, without requesting an extension of time. Armco argues that Casey’s motion should be denied because it was not timely filed. In light of the court’s ultimate decision in favor of Armco, Armco’s objection is moot.

Second, Casey suggests that Texas, not Pennsylvania, law should be applied. Both parties agree, however, that there is no significant difference between Pennsylvania and Texas contract law. In fact, both parties cite both Pennsylvania and Texas cases in their briefs. Therefore, no true choice of law issue exists. As a result, as a federal court sitting in diversity, the substantive law of the forum state, Pennsylvania, applies. Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938).

[1350]*1350C. The Brokerage Contract Dispute

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Related

Erie Railroad v. Tompkins
304 U.S. 64 (Supreme Court, 1938)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Warner Bros. Theatres, Inc. v. Proffitt
198 A. 56 (Supreme Court of Pennsylvania, 1938)

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Bluebook (online)
789 F. Supp. 1347, 1992 U.S. Dist. LEXIS 9191, 1992 WL 99232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/casey-equipment-corp-v-armco-inc-pawd-1992.