Comfax Corp. v. North American Van Lines, Inc.

638 N.E.2d 476, 1994 Ind. App. LEXIS 1037, 1994 WL 417461
CourtIndiana Court of Appeals
DecidedAugust 11, 1994
Docket01A02-9308-CV-412
StatusPublished
Cited by18 cases

This text of 638 N.E.2d 476 (Comfax Corp. v. North American Van Lines, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Comfax Corp. v. North American Van Lines, Inc., 638 N.E.2d 476, 1994 Ind. App. LEXIS 1037, 1994 WL 417461 (Ind. Ct. App. 1994).

Opinions

SHARPNACK, Chief Judge.

Comfax Corporation ("Comfax") and James Kuker appeal the trial court's entry of partial summary judgment on their claim for abuse of process in favor of North American Van Lines, Inc. (CNAVL"). We affirm.

[478]*478Comfax and Kuker present two issues for review, which we restate as: (1) whether the trial court erred in striking the affidavits of Kuker, David Lundy, and Michael Bireley, designated by Comfax and Kuker in opposition to NAVL's motion for partial summary judgment; and (2) whether Comfax and Kuker established a genuine issue of material fact precluding entry of partial summary judgment in favor of NAVL.

The litigation between the parties spans more than nine years. This court's decision 'in Comfax v. North American Van Lines, Inc. (1992), Ind.App., 587 N.E.2d 118, provides a statement of facts useful in understanding the background of the present appeal:

"NAVL is a large nationwide moving and storage corporation. Comfax is a smaller corporation which acts as a local distributor in the Fort Wayne area for a major computer software developer. Kuker was Comfax's president.
In late 1983 or early 1984, NAVL approached Comfax for the purposes of purchasing and providing for itself and its agents a generic computerized accounting package known as "CYMA." NAVL selected the CYMA software because it was the only software program compatible with NAVL's thirteen period accounting year. development of two custom designed computer software accounting packages, a Commission Statement Reconciliation System ("CSRS"), and a Storage Billing Module ("SBM"). The two modules would be unique to the industry. Extensive efforts began to familiarize Comfax personnel with the moving and storage industry. Comfax commenced work on the two programs on oral representations by NAVL, prior to the signing of any written documents. North American Moving and Storage ("NAMS"), NAVL's local agent, was to be the system's test site. NAVL also discussed with Comfax possible:
On September 11, 1984, NAVL and Comfax signed a written contract ("Contract"). See Record at 38-41. Attached to it were functional specifications which had already been developed by Comfax in conjunction, cooperation, and agreement with NAVL. Both parties' legal counsel reviewed and revised the Contract, although it was originally drafted by Comfax's personnel and counsel. The Contract included projected completion dates for the programs of ninety (90) days from the Contract's execution date, and included a clause providing that a ten percent (10%) penalty fee, subtracted from the Contract price, would be assessed for each calendar month beyond the ninety day period required for completion. Kuker suggested the ninety day projected completion date, based on the progress that had been made to and including the date that the Contract was executed.
The Contract also provided that the parties would deal with each other in confidence and maintain the secrecy of all information disclosed to one another. The Contract envisioned that the programs would remain Comfax's property, and that for a period of two years following the Contract's execution, NAVL would agree to notify its agents of the availability of products and would allow Comfax to contact NAVL's agents directly and generally advertise the availability of the program's products. Thus, the Contract and the relationship between the parties essentially granted to Comfax a market for the sale of its products with the assistance of introduction to those agents by NAVL.
After the Contract was executed, Com-fax continued to develop the programs. Comfax prepared drafts of design specifications, which were forwarded to NAVL for review, revision, and return. In the late fall of 1984, revision and return time from North American slowed while demands for the project's completion increased. There had been no push from North American with regard to production or completion of the modules. Previously, NAVL had not pressured Comfax to complete the project quickly. However, in October of 1984, NAVL began to demand completion. NAVL stated that if the modules were completed prior to December 27, 1984, and if the system achieved a certain level of accuracy, the modules would be presented at agent meetings in January, 1985. Record at 8186. The ree-[479]*479ord shows conflicting testimony regarding whether such agent meetings had ever been discussed with Comfax, but these meetings were not referenced in the parties' Contract.
Employees at NAVL saw the project's profit potential and wished to take advantage of the financial opportunity for NAVL. One of NAVU's divisions, Information Systems Services ("ISS"), continued to communicate with Comfax and Kuker and Comfax believed that the parties' relationship was continuing as planned. ISS, however, was planning to "stomp" and "get rid of" the Comfax Contract. Record at 2029, 1850. NAVL and NAMS continued to delay return of information Comfax sent them to review and return, which was required to complete the project. ISS's liaison with Comfax stated that he would refer NAVL agents to Comfax for sales of the generic software package. Record at 2863. Several initial sales were made, but the comprehensive referral system that Comfax had anticipated was never realized. Several times, NAVL sought information on becoming a CYMA distributor itself.
In response to NAVL's requests, Com-fax devoted essentially all of its resources and manpower to the NAVL project. NAVL's letter to Comfax on December 14, 1984, stated that it would feature Comfax's products at an upcoming agent meeting provided the products had reached a state of sufficient completeness and accuracy. Record at 3186. As late as December 20, 1984, NAVL approved and returned to Comfax a set of design specifications for further action by Comfax. Record at 8239-3801.
On December 27, 1984, NAVL wrote to Kuker, informing him of NAVL's intent to terminate the Contract, citing as reasons therefor Comfax's failure to comply with the Contract regarding the employment of qualified personnel, Comfax's financial instability, and Comfax's bad faith in business dealings with NAVL. Record at 3305. About the time that NAVL notified Comfax of its decision to terminate the Contract, one of Comfax's key programmers, and the NAVL project's manager, left Comfax and shortly thereafter began to work for NAVL. The modules were not completed in December of 1984, although completion was expected in January or February of 1985.
Ultimately, the Contract was terminated in a letter from NAVL to Comfax on January 31, 1985. Record at 3307. When NAVL agents would inquire regarding Comfax's programs, NAVL responded that it did not endorse Comfax's products and would be producing a similar product itself in the near future. Record at 2050-2058. Shortly thereafter, NAVL filed suit against Comfax and Kuker alleging breach of contract and seeking to prevent the disclosure of and to recover from Comfax any and all NAVL information or documents in their possession. NAVL later established a wholly-owned subsidiary called Relocation Management Systems ("RMS"), which marketed a software package.
Following the Contract's termination and the initiation of litigation, Comfax went into financial collapse and ceased doing business.

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Comfax Corp. v. North American Van Lines, Inc.
638 N.E.2d 476 (Indiana Court of Appeals, 1994)

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Bluebook (online)
638 N.E.2d 476, 1994 Ind. App. LEXIS 1037, 1994 WL 417461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comfax-corp-v-north-american-van-lines-inc-indctapp-1994.