Coakley & Williams, Inc. v. Shatterproof Glass Corp.

706 F.2d 456, 36 U.C.C. Rep. Serv. (West) 87
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 21, 1983
DocketNo. 81-1899
StatusPublished
Cited by53 cases

This text of 706 F.2d 456 (Coakley & Williams, Inc. v. Shatterproof Glass Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coakley & Williams, Inc. v. Shatterproof Glass Corp., 706 F.2d 456, 36 U.C.C. Rep. Serv. (West) 87 (4th Cir. 1983).

Opinion

MURNAGHAN, Circuit Judge:

The strategy of experienced trial lawyers is to avoid, in all but the clearest case, a defense on the basis of a Federal Rules of Civil Procedure 12(b)(6) motion contending that there has been a “failure to state a claim upon which relief can be granted.” At so early a stage, all factual inferences must be made in favor of the plaintiff;1 the facts must be viewed as the plaintiff most strongly can plead them.2

Hence, the issues presented to the district court, the foundation underlying much of the law which may govern at subsequent stages of the case, will be addressed in circumstances which may well prove unduly favorable to the plaintiff. With little or no chance of prevailing, the defendant, in filing a 12(b)(6) motion, risks educating the plaintiff to aspects of the ease which might otherwise be overlooked or at least not arise in circumstances so predispositive to the plaintiff’s side of things.

The present case illustrates the proposition. On an appeal from a dismissal under 12(b)(6) the accepted rule is “that a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-102, 2 L.Ed.2d 80 (1957). Liberal construction in favor of the plaintiff is mandated. Jenkins v. McKeithen, 395 U.S. 411, 421, 89 S.Ct. 1843, 1848, 23 L.Ed.2d 404 (1969). We state as “facts” the allegations and inferences most favorable to the plaintiff.

Washington Plate Glass Company had a contract “to furnish and install aluminum and glass curtain wall and store front work”3 on a building located in Lanham, Maryland being built by Coakley & Williams, Inc., the plaintiff. To accomplish its contractual undertaking, Washington purchased the glass spandrel required from the defendant, Shatterproof Glass Corp. Still other materials needed for the project, predominantly aluminum, it appears were acquired in part at least elsewhere.

The contract price under the Coakley and Washington agreement amounted to $262,-500, subsequently increased by amendment to $271,350.4 The glass purchased by Washington from Shatterproof cost $87,715.00,5 [458]*458with the proviso that units were “to be properly marked for field installation.”

The work progressed and the contract for the aluminum and glass curtain wall and storefront work was completed in March of 1974. Discoloration of the glass ensued, and Coakley complained. To remedy the situation, Washington agreed to replace the glass at no cost to Coakley, and did in fact replace a substantial portion of the glass. Shatterproof supplied the replacement glass and reimbursed Washington for the cost of re-installation, accomplished in April of 1977.

By December of 1977, the glass had again discolored, and complaints began to flow from Coakley to Washington and Shatterproof in or about December 1978. Shatterproof declined to replace a second time. On January 14,1981, Coakley filed suit against Shatterproof in the Circuit Court for Montgomery County, Maryland alleging breach of implied warranties of merchantability and fitness for a particular purpose. Reliance was placed on certain provisions of the Maryland Uniform Commercial Code,

Annotated Code of Maryland, § 1-101 et seq.6 Removal to the United States District Court for the District of Maryland followed, and Shatterproof sought dismissal under Fed.RCiv.R 12(b)(6).

A hearing on the 12(b)(6) motion followed at which Shatterproof contended (1) that the U.C.C. was inapplicable, (2) that lack of privity7 was fatal to the claim, and (3) that the statute of limitations had run prior to commencement of the action. We now have the case before us on appeal from an order granting the 12(b)(6) motion and dismissing the case solely on the grounds that the U.C.C. was not applicable.8

Whether the U.C.C. applies turns on a question as to whether the contract between Washington and Coakley involved principally a sale of goods, on the one hand, or a provision of services, on the other. U.C.C. § 2-314 creates an implied warranty “that the goods shall be merchantable” to be “implied in a contract for their sale.” Section 2-315 establishes an implied warranty “that the goods shall be fit” for a [459]*459particular purpose, “[w]here the seller at the time of contracting has reason to know [the] particular purpose.” (Emphasis added.)

Consequently, unless there has been a buyer of goods, the U.C.C. warranties of merchantability and of fitness for a particular use do not apply. Furthermore, unless there has been a buyer of goods,9 the elimination of a requirement of privity would not have been achieved.10 Accordingly, both questions (1) as to the availability of the warranties and (2) as to the amenability of Shatterproof, who was not in privity with Coakley, to suit by Coakley, come down to whether the transactions between Washington and Coakley was a sale of goods or the provision of services.

To resolve that question, we must address ourselves to a welter of cases reaching varying results depending on the considerations deemed to predominate in each particular ease.11 It should not pass unnoticed that all were decided at summary judgment [460]*460or beyond. No case involving the issue appears to have been disposed of at the Rule 12(b)(6) or demurrer stage. They emphasize, in particular, three aspects which may, or may not, constitute indicia of the nature of the contract: (1) the language of the contract,12 (2) the nature of the business of the supplier,13 and (3) the intrinsic worth of the materials involved.14

A distillation of the cases outlined in the foregoing notes 11-14 produces an inescapable conclusion that, on the facts in their present pro-plaintiff posture,15 a reasonable viewing of them would permit a factfinder to conclude that the contract between Washington and Coakley predominantly concerned a sale of goods, and consequently was governed by the U.C.C. A Rule [461]*46112(b)(6) motion simply cannot serve to dispose of the case.

As to the first of the emphasized aspects, the contract between Washington and Coakley, speaks in terms of furnishing and installing a wall and performing storefront work. Clearly, at the very outset of performance Washington had the responsibility to bring to the affected premises the materials which ultimately would form the glass curtain wall and store front. The U.C.C. in § 2-105 defines “goods” as “all

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Cite This Page — Counsel Stack

Bluebook (online)
706 F.2d 456, 36 U.C.C. Rep. Serv. (West) 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coakley-williams-inc-v-shatterproof-glass-corp-ca4-1983.