Dean Technology, Inc. v. CE Power Solutions, LLC

96 F. Supp. 3d 736, 2015 U.S. Dist. LEXIS 40661, 2015 WL 1468299
CourtDistrict Court, S.D. Ohio
DecidedMarch 30, 2015
DocketCase No. 1:13-cv-00548
StatusPublished
Cited by2 cases

This text of 96 F. Supp. 3d 736 (Dean Technology, Inc. v. CE Power Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dean Technology, Inc. v. CE Power Solutions, LLC, 96 F. Supp. 3d 736, 2015 U.S. Dist. LEXIS 40661, 2015 WL 1468299 (S.D. Ohio 2015).

Opinion

ORDER:

(1) DENYING DEFENDANTS’ MOTION TO DISMISS FOR LACK OF SUBJECT-MATTER JURISDICTION (DOC. 21);

(2) DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT (DOC. 28) & DENYING DEFENDANTS’ MOTION FOR LEAVE TO FILE A SUR-REPLY BRIEF IN OPPOSITION (DOC. 42); AND

(3) GRANTING IN PART DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT (DOC. 24)

TIMOTHY S. BLACK, District Judge.

This civil action is before the Court on three substantive motions: (1) the motion to dismiss for lack of subject-matter jurisdiction filed by Defendants CE Power Solutions, LLC and CE Power Solutions of Florida, LLC (Doc. 21)1 and the parties’ [739]*739responsive-memoranda (Does. 25, 272 and 33); (2) Plaintiff Dean Technology, Inc.’s motion for summary judgment (Docs. 28, 303) and the parties’ responsive memoran-da (Docs. 37, 40.4); and (3) the motion for partial summary judgment filed by Defendants CE Power Solutions, LLC and CE Power Solutions of Florida, LLC (Doc. 24)5 and the parties’ responsive memoran-da (Docs. 34, 366, 38). Also before the Court is the motion to file a sur-reply brief in opposition to Plaintiffs motion for summary judgment by Defendants CE Power Solutions, LLC and CE Power Solutions of Florida, LLC (Doc. 42) and the parties’ responsive memoranda (Docs. 43, 44);

1. DEFENDANTS’ MOTION TO DISMISS FOR LACK OF SUBJECT-MATTER JURISDICTION

Plaintiff invokes this Court’s jurisdiction pursuant to 28 U.S.C. § 1332, averring that this civil action is one between citizens of different states with an amount in controversy that exceeds $75,000, exclusive of interests and costs. (Doc. 1, Complaint ¶ 1.) Defendants do not contest complete diversity, but argue that Plaintiff cannot satisfy the minimum amount in controversy-

A. Allegations Contained within the Complaint

Plaintiff specializes in the manufacture, distribution and support of high voltage components, high current components, assemblies and power supplies. It sells three main product lines, one of which is known as “CKE.”7 (Doc. 1, Complaint ¶ 7.) Defendants provide “electrical systems solutions” to their customers, which operate electric utility power plants, alternative energy facilities, transmission and distribution substations, and other facilities with critical power needs. (Id. ¶ 8.) The products required by Defendants to service their customers are specialized; lead time to assemble and ship them is a necessity. To this end, then, Defendants (as buyer) used “blanket” purchase orders to identify in advance to Plaintiff (as seller) the products needed. (See id. ¶ 10.) The “blankets” required Plaintiff to maintain a certain amount of inventory consisting of parts and finished goods to be able to meet Defendants’ shipping requirements. (Id. ¶ 12.) At issue are three particular blankets, identified as Purchase Order Nos. 19252 (issued in 2009), 20388 (issued in 2010) and 22130 (issued in 2011). (Id. ¶ 16 & Exh. 1.) Each of them contained quantity and price terms for the items identified, and, upon receipt of each of them, Plaintiff sent to Defendants a sales order in return. A second sales order also was sent at the time of product shipment. These sales orders included shipping and credit terms and incorporated by reference Plaintiff’s “General Terms and Conditions of Sale.” (Id. ¶¶ 10-11,13.)

Plaintiff maintains that the blanket purchase orders originated by Defendants and [740]*740its corresponding sales orders constitute contracts. Plaintiff was obligated to supply all products listed, and, in turn, Defendants were obligated to buy all products supplied. (Id. ¶ 15.) Plaintiff further maintains that Defendants have refused to accept and pay for approximately $100,000 of product ordered via the blankets. (Id. ¶¶ 17, 18.) Plaintiff sues under theories of breach of contract (id. ¶¶ 20-27) and promissory estoppel (id. ¶¶ 28-34).

B. Standard of Review

When considering a Rule 12(b)(1) motion to dismiss for lack of subject-matter jurisdiction, one of two standards may apply, depending on the nature of the challenge. Golden v. Gorno Bros., Inc. 410 F.3d 879, 881 (6th Cir.2005). If the challenge is directed to the factual basis for jurisdiction, the court must weigh the evidence presented and the plaintiff bears the burden of proof. DLX, Inc. v. Kentucky, 381 F.3d 511, 516 (6th Cir.2004). But if the defendant challenges the court’s subject-matter jurisdiction on its face, the court must, in effect, resolve the issue by applying the same standard applicable to a Rule 12(b)(6) motion — that is, treating all of the facts alleged in the complaint as true. See id. Here Defendants’ challenge is quite obviously' a “factual” attack and, therefore, evidence beyond the Complaint will be considered.

“If a claim of the required jurisdictional amount is apparently made in good faith, that claim controls unless it appears ‘to a legal certainty that the claim is really for less than the jurisdictional amount.’ ” Jones v. Knox Exploration Corp., 2 F.3d 181, 182 (6th Cir.1993) (quoting St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 289, 58 S.Ct. 586, 82 L.Ed. 845 (1938)). If the evidence adduced at trial “ ‘conclusively show[s] that the plaintiff never had a claim even arguably within the [required] range,’ a diversity action must be dismissed.” Id. (quoting Jimenez Puig v. Avis Rent-A-Car Sys., 574 F.2d 37, 39 (1st Cir.1978)). A fortiori, the same conclusion must attend if such a revelation occurs during pre-trial discovery.

C. Analysis

Defendants dispute that the blankets and corresponding sales orders create three separate contracts. Assuming they do, however, Defendants urge that the maximum amount Plaintiff could recover is governed by what they identify as the “liquidated damages” provision set forth in Section 2.f.2. of the General Terms and Conditions of Sale. That specific provision, and surrounding provisions helpful to provide context, read as follows:

2. ORDERS
f. Cancellation of Orders.
1. Standard Products. If Customer cancels an order for Standard Products prior to initial shipment of any portion of such order, Seller may charge Customer Seller’s then effective re-stocking fee.
2. Specialty Products.

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96 F. Supp. 3d 736, 2015 U.S. Dist. LEXIS 40661, 2015 WL 1468299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dean-technology-inc-v-ce-power-solutions-llc-ohsd-2015.