CRMSuite Corporation v. General Motors Company

CourtDistrict Court, M.D. Florida
DecidedMarch 1, 2022
Docket8:20-cv-00762
StatusUnknown

This text of CRMSuite Corporation v. General Motors Company (CRMSuite Corporation v. General Motors Company) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CRMSuite Corporation v. General Motors Company, (M.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

CRMSUITE CORPORATION, a Florida corporation,

Plaintiff,

v. Case No: 8:20-cv-762-WFJ-AAS

GENERAL MOTORS COMPANY, a Delaware corporation; GENERAL MOTORS, LLC; a Delaware limited liability company; and GENERAL MOTORS HOLDINGS LLC, a Delaware limited liability company,

Defendants. __________________________________/ ORDER GRANTING MOTION FOR SUMMARY JUDGMENT This matter comes before the Court on Defendants General Motors Company, General Motors, LLC, and General Motors Holdings LLC’s (collectively, “GM”) Motion for Summary Judgment, Dkt. 110. Plaintiff CRMSuite Corporation filed a response, Dkt. 120. The Court received cogent oral argument from the parties on February 16, 2022, followed by invited supplemental filings, Dkts. 133 & 134. Upon careful consideration, the Court grants Defendants’ motion. BACKGROUND I. GM’s Software Certification Program

As set forth in this Court’s previous order, Dkt. 71, this case arises from a dispute between Plaintiff and GM regarding GM’s Dealer Technology Assistance Program/Dealer Vendor Management Program (“DTAP/DVMP”). Through

DTAP/DVMP, GM certifies third-party vendors’ customer relationship management (“CRM”) software products. Dkt. 53 ¶ 15. CRM software allows dealers to manage customer leads, including those generated through dealers’ websites. Id. ¶ 10. A list of DTAP/DVMP-certified CRM products that are

available for purchase by GM dealers is displayed on GM’s Dealer Vendor Advisor website. Id. ¶ 16. Unless a GM dealer purchases a CRM software product from a GM-approved vendor, GM will not provide customer leads, related data, or

performance bonuses to the dealer. Id. ¶ 18. To become a GM-approved vendor, a CRM vendor must meet several technical standards and requirements. Dkt. 53-1 at 3. Among these requirements is the vendor’s need to integrate a connector server to act as a data communications

pipeline between its CRM software and GM’s computer network. Dkt. 53 ¶ 19. GM uses this pipeline to deliver the leads, data, and bonuses to dealers. Id. ¶¶ 18−19. A vendor must also pay a recurring fee to GM to participate in the vendor

program. Id. ¶ 20. While all CRM vendors must use a pipeline and pay a vendor fee, other certification requirements differ depending on the level of certification a vendor pursues. Id. ¶¶ 21−22. GM offers two certification levels: basic and

premium. Id. ¶ 21. Unlike basic-level certification, premium-level certification allows the vendor’s dealer customers to receive subsidies from GM to cover the cost of purchasing the CRM product. Id. However, obtaining premium certification

requires substantial time and expense, as a vendor must add eight additional functions to its software product. Id. ¶ 22. Adding these eight functions, which are unique to GM’s systems, requires vendors to work with GM’s information technology (“IT”) staff and participate in testing and demonstrations of the

functions. Id. ¶¶ 22−23. In addition to obtaining certification under DTAP/DVMP, a vendor seeking to participate in GM’s vendor program must enter into a DTAP/DVMP contract

with GM. See Dkt. 53-1. The DTAP/DVMP contract requires vendors to adhere to the aforementioned certification criteria. Id. at 3. II. Factual Allegations Plaintiff is a Florida-based corporation that provides CRM software to

automobile dealers, including dealers who sell GM vehicles. Id. ¶¶ 10, 12. Plaintiff states that its CRM product, CRMSuite, was DTAP/DVMP-certified and available for dealers to purchase through GM’s vendor program from 2016 until 2020. Id. ¶

25. Plaintiff’s CRMSuite product was originally owned by iMagic Lab LLC (“iMagic”), which called the product “Dealer CRM.” Id. ¶ 26; see Dkt. 53-2. iMagic’s CEO was Richard Keith Latman, who is also Plaintiff’s CEO and

president. Dkt. 111 ¶¶ 2, 19; Dkt. 121 ¶¶ 2, 19. iMagic created a pipeline and obtained premium-level certification for its Dealer CRM product. Dkt. 53 ¶¶ 27, 31. In August 2013, iMagic also executed a freely assignable DTAP/DVMP

contract. Dkt. 53-1. The iMagic contract had an initial term of five years and gave GM the option to renew the contract for two additional one-year terms by providing written notice to iMagic ninety days prior to the expiration of either the initial term or first renewal term. Id. §§ I, XV. The certified Dealer CRM product

was available for purchase through GM’s vendor program beginning in 2013. Dkt. 53 ¶ 31. In 2015, iMagic transferred its rights under the DTAP/DVMP contract,

including its Dealer CRM product and pipeline, to Plaintiff. Id. ¶ 32. After the transfer, Plaintiff changed the Dealer CRM product name to CRMSuite. Id. ¶ 33. GM updated the Dealer Vendor Advisor website to reflect the product’s name change at Mr. Latman’s request. Id. ¶¶ 35−37. Plaintiff used iMagic’s transferred

pipeline for its CRMSuite product until 2018. Id. ¶ 40. In November 2017, Plaintiff entered into a reseller agreement with Dominion Dealer Services, LLC (“Dominion”). Id. ¶ 41. At this time, Dominion

already had a DTAP/DVMP contract with GM that covered its DTAP/DVMP- certified CRM product called Autobase. Dkt. 111 ¶¶ 56−57; Dkt. 121 ¶¶ 56−57. Under the reseller agreement, Plaintiff exclusively licensed to Dominion the “right

to market, sell, distribute and/or sublicense” Plaintiff’s CRM software—“referred to as CRMSuite”1—for a five-year term under a white label.2 Dkt. 79-9 ¶¶ 2.1(a, e), 7.1. The reseller agreement’s “cross-over date” upon which Plaintiff could no

longer market, sell, distribute, and/or sublicense CRMSuite was April 18, 2018. Dkt. 111 ¶¶ 48−49; Dkt. 121 ¶¶ 48−49. Plaintiff retained the right to support subscriptions of its existing CRMSuite dealer customers. Dkt. 111 ¶ 46; Dkt. 121 ¶ 46. Dominion agreed to incorporate the language “powered by CRMSuite” in the

name of the white label product, ultimately calling the product “Vision powered by CRMSuite.” Dkt. 53 ¶ 42; Dkt. 121 ¶ 59. Per the terms of the reseller agreement, Dominion was to pay Plaintiff a license fee of $5 million, and Plaintiff agreed to

perform original equipment manufacturer (“OEM”) integrations at Dominion’s request for no extra cost. Dkt. 79-9 ¶¶ 3.4, 5.1. The parties agree that, roughly one month after executing the reseller agreement, Dominion asked GM whether it could replace its certified Autobase

product with a white label version of Plaintiff’s CRM software. Dkt. 111 ¶ 64; Dkt.

1 Dkt. 79-9 at 28. 2 “‘White-label’ products are versions sold without branding so the purchasing entity can brand the product itself.” CEATS, Inc. v. Cont’l Airlines, Inc., 526 F. App’x 966, 968 (Fed. Cir. 2013). While Plaintiff denies that this was a white label arrangement, Dkt. 122 ¶ 59, the reseller agreement and multiple emails specifically use the term “white label.” See Dkt. 79-9 ¶ 2.1(e); Dkt. 111-4 at 2, 224; Dkt. 121-18 at 7. 121 ¶ 64. Shortly after, in January 2018, GM initiated a DTAP change request to update Dominion’s DTAP/DVMP contract to allow Dominion to work with

subcontractors. Dkt. 111 ¶ 67; Dkt. 121 ¶ 67; Dkt. 111-4 at 235−36. GM also updated Dominion’s DTAP/DVMP contract to cover the new “Dominion Vision” product. Dkt. 111 ¶ 71; Dkt. 121 ¶ 71.

Because Dominion already had a pipeline for Autobase, Plaintiff shifted its CRMSuite product customers to Dominion’s pipeline. Dkt. 53 ¶¶ 44−45. By sharing this pipeline, Plaintiff and Dominion could avoid maintaining two separate pipelines and only needed to pay one vendor fee to GM. Id. ¶¶ 45−48. GM

approved Plaintiff and Dominion’s pipeline-sharing arrangement, and Dominion paid the shared vendor fees. See id. ¶¶ 49−51; Dkt. 53-3; Dkt. 53-4. Plaintiff alleges that in exchange for approving the shared vendor fee and pipeline

Free access — add to your briefcase to read the full text and ask questions with AI

Related

West Indies Network-I, LLC v. Nortel Networks, (CALA) Inc.
243 F. App'x 482 (Eleventh Circuit, 2007)
Allen v. Tyson Foods, Inc.
121 F.3d 642 (Eleventh Circuit, 1997)
Sandra Jackson v. BellSouth Telecommunications
372 F.3d 1250 (Eleventh Circuit, 2004)
Adickes v. S. H. Kress & Co.
398 U.S. 144 (Supreme Court, 1970)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Ceats, Inc. v. Continental Airlines, Inc.
526 F. App'x 966 (Federal Circuit, 2013)
Witt v. La Gorce Country Club, Inc.
35 So. 3d 1033 (District Court of Appeal of Florida, 2010)
Vermeulen v. Worldwide Holidays, Inc.
922 So. 2d 271 (District Court of Appeal of Florida, 2006)
Mobil Oil Corp. v. Bransford
648 So. 2d 119 (Supreme Court of Florida, 1995)
Swerhun v. General Motors Corp.
812 F. Supp. 1218 (M.D. Florida, 1993)
PNR, Inc. v. Beacon Property Management, Inc.
842 So. 2d 773 (Supreme Court of Florida, 2003)
FSOMA v. Slepin
971 So. 2d 141 (District Court of Appeal of Florida, 2007)
WR Grace and Co. v. Geodata Services
547 So. 2d 919 (Supreme Court of Florida, 1989)
State v. Beach Blvd Automotive, Inc.
139 So. 3d 380 (District Court of Appeal of Florida, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
CRMSuite Corporation v. General Motors Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crmsuite-corporation-v-general-motors-company-flmd-2022.