CDK GLOBAL, LLC v. TULLEY AUTOMOTIVE GROUP, INC.

CourtDistrict Court, D. New Jersey
DecidedMarch 30, 2021
Docket2:15-cv-03103
StatusUnknown

This text of CDK GLOBAL, LLC v. TULLEY AUTOMOTIVE GROUP, INC. (CDK GLOBAL, LLC v. TULLEY AUTOMOTIVE GROUP, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CDK GLOBAL, LLC v. TULLEY AUTOMOTIVE GROUP, INC., (D.N.J. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

CDK GLOBAL, LLC, AS SUCCESSOR- Civ. No. 15-3103 (KM)(JBC) INT-INTEREST TO ADP DEALER SERVICES, INC. OPINION Plaintiff,

v.

TULLEY AUTOMOTIVE GROUP, INC. AND JOHN DOE CORPORATIONS,

Defendants.

KEVIN MCNULTY, U.S.D.J.: Plaintiff CDK Global, LLC (“CDK”) brings this motion for partial reconsideration of my September 25, 2020 opinion (“Op.”) and order (DE 310; DE 311) which, among other things, denied CDK’s motion for summary judgment against Defendant Tulley Automotive Group, Inc. (“Tulley”)’s New Jersey Consumer Fraud Act claims. CDK claims that the aspect of my decision denying summary judgment should be reconsidered because of an intervening unpublished decision issued by the New Jersey Appellate Division, and because I, according to CDK, misstated facts in my prior opinion and did not properly apply choice-of-law rules to the NJCFA counterclaim. For the reasons provided herein, I will deny plaintiffs’ motion. I. Summary I write primarily for the parties and assume familiarity with the facts and procedural history. I relay only the most salient facts for determination of this motion. Tulley is an automobile dealership with locations in New Hampshire. (DE 310 at 1.) CDK sells, among other things, dealer management system (“DMS”) software, which car dealerships use to manage their daily operations. (Id.) CDK sold DMS products and associated services to Tulley. (Id.) CDK, claiming that Tulley breached the parties’ contract by terminating the agreement early, brought four causes of action based on the parties’ agreement. (Id.) Tulley responded with five counterclaims, including fraudulent inducement, recission, breach of contract, violation of the New Jersey Consumer Fraud Act, and unjust enrichment. (Id. at 1–2.) My September 25, 2020 opinion evaluated the parties’ cross-motions for summary judgment. The aspect of that decision relevant to this motion to reconsider is that I denied CDK’s motion for summary judgment against Tulley’s New Jersey Consumer Fraud Act claim. (Id. at 27–28.) II. Discussion a. Legal standard In the District of New Jersey, motions for reconsideration are governed by Local Civil Rule 7.1(i). Reconsideration is an “extraordinary remedy,” to be granted “sparingly.” NL Indus. Inc. v. Commercial Union Ins. Co., 935 F. Supp. 513, 516 (D.N.J. 1996). Generally, reconsideration is granted in three scenarios: (1) when there has been an intervening change in the law; (2) when new evidence has become available; or (3) when necessary to correct a clear error of law or to prevent manifest injustice. See North River Ins. Co. v. CIGNA Reinsurance Co., 52 F.3d 1194, 1218 (3d Cir. 1995); Max's Seafood Café ex rel. Lou–Ann, Inc. v. Quinteros, 176 F.3d 669, 677 (3d Cir. 1999) (internal citation omitted); see also Crisdon v. N.J. Dep't of Educ., 464 F. App'x 47, 49 (3d Cir. 2012) (“The purpose of a motion for reconsideration ... is to correct manifest errors of law or fact or to present newly discovered evidence.”) (internal citation omitted); Carmichael v. Everson, 2004 WL 1587894, at *1 (D.N.J. May 21, 2004). “The Court will grant a motion for reconsideration only where its prior decision has overlooked a factual or legal issue that may alter the disposition of the matter.” Andreyko v. Sunrise Sr. Living, Inc., 993 F. Supp. 2d 475, 478 (D.N.J. 2014). b. Application CDK asserts that reconsideration is appropriate for the following reasons: (1) it asserts that RDM Concrete & Masonry, LLC v. Surfside Casual Furniture, 2020 WL 4459986 (App. Div. Aug. 4, 2020) is an intervening decision which invalidates my previous opinion; (2) it claims that I misstated certain factual matters in my previous opinion; and (3) it claims that I did not apply choice-of- law rules on an issue-by-issue basis, as required under the doctrine of depeçage. None of these reasons are valid bases for reconsideration. 1. RDM Concrete & Masonry, LLC v. Surfside Casual Furniture In RDM, the Appellate Division considered the defendant’s appeal from a directed verdict against its NJCFA counterclaim. 2020 WL 4459986 at 3. The parties’ dispute related to the construction of a furniture store. Id. at 1. The defendant hired the plaintiff as a concrete contractor, and part of the parties’ agreement was that plaintiff would include wire mesh in concrete poured for the mezzanine level of the defendant’s store. Id. at 1–2. The plaintiff never included wire mesh in the concrete, and the defendant refused to pay. Id. at 2. Plaintiff sued for breach of contract, and defendant brought a counterclaim for violation of the NJCFA. Id. at 1–2. The trial court issued a directed verdict in plaintiff’s favor on the NJCFA claim after a jury trial;1 the trial court concluded that the NJCFA was inapplicable to the transaction between the parties because it did not constitute “merchandise” under the NJCFA as interpreted by All the Way Towing. Id. at 4. The Appellate Division first described the New Jersey Supreme Court’s decision in All the Way Towing, LLC v. Bucks Cty. Int’l Inc., 236 N.J. 431 (2019), in which the New Jersey Supreme Court set forth the circumstances in which “business-to-business transactions” can “fit within the CFA’s definition of ‘merchandise.’” 2020 WL 4459986 at *4 (quoting All the Way Towing, 236 N.J.

1 The jury separately ruled in plaintiff’s favor on its breach of contract claim. Id. at 1–2. at 446). It explained that under All the Way Towing, whether business-to- business transactions constitute merchandise depends on the consideration of four factors: (1) The complexity of the transaction, taking into account any negotiation, bidding, or request for proposals process; (2) the identity and sophistication of the parties, which includes whether the parties received legal or expert assistance in the development or execution of the transactions; (3) the nature of the relationship between the parties and whether there was any relevant underlying understanding or prior transactions between the parties; and . . . (4) the public availability of the subject merchandise.

2020 WL 4459986 at *5 (quoting All the Way Towing, 236 N.J. at 447– 48). The court then applied All the Way Towing to the facts of the case. Beginning with the second factor, the sophistication of the parties, it noted that the defendant was a “sophisticated party that chose to engage in a sophisticated endeavor,” reasoning that the defendant’s president had served as its general contractor on the construction project, which involved the construction of a 17,500 square foot commercial building with a second story. Id. at 5. The court further noted that the president had previously been involved in the construction of furniture stores and had relied on the advice of professional experts, including a structural engineer, in planning the project at issue. Id. The court then turned to the first factor, the complexity of the transaction, including negotiations between the parties. Id. at 6. It reasoned that although the parties had not engaged in a protracted and involved negotiation, the defendant did not merely accept the plaintiff’s initial proposal, but instead considered three or four other contractors and extensively discussed the project with the plaintiff. Id. As for the third factor, the “nature of the relationship between the parties,” the court noted that the parties did not have any prior business relationship, and noted that their relationship during the transaction was that of general contractor and sub-contractor. Id.

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Bluebook (online)
CDK GLOBAL, LLC v. TULLEY AUTOMOTIVE GROUP, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cdk-global-llc-v-tulley-automotive-group-inc-njd-2021.