Delta Alcohol Distributors v. Anheuser-Busch International, Inc.

28 F. Supp. 3d 682, 2014 WL 2815743, 2014 U.S. Dist. LEXIS 84687
CourtDistrict Court, E.D. Michigan
DecidedJune 23, 2014
DocketCase No. 13-cv-14829
StatusPublished
Cited by8 cases

This text of 28 F. Supp. 3d 682 (Delta Alcohol Distributors v. Anheuser-Busch International, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delta Alcohol Distributors v. Anheuser-Busch International, Inc., 28 F. Supp. 3d 682, 2014 WL 2815743, 2014 U.S. Dist. LEXIS 84687 (E.D. Mich. 2014).

Opinion

OPINION AND ORDER ON DEFENDANTS’ MOTION TO DISMISS THE AMENDED COMPLAINT [17]

LAURIE J. MICHELSON, District Judge.

Plaintiff distributed beer in Iraq for An-heuser-Busch, International, Inc., from 2011 to 2012. After Anheuser-Busch International terminated the relationship, Plaintiff filed this action for defamation, fraud, and misappropriation of trade secrets, among other torts. Defendants An-heuser-Busch International and Anheu-ser-Busch, LLC, seek to dismiss the case, citing a forum selection clause in favor of Geneva, Switzerland, in their distribution agreement with Plaintiff. The Court agrees that the parties’ bargained-for choice of forum requires dismissal of Plaintiffs Amended Complaint. Therefore, Defendants’ Motion to Dismiss the Amended Complaint (Dkt. 17) is GRANTED and the Amended Complaint is DISMISSED.

I. BACKGROUND

A. Procedural History

Delta Alcohol 'Distributors (“Delta”) filed this action in November 2013. (Dkt. 1.) In December 2013, Defendants filed a Motion to Dismiss on the basis of forum non conveniens and for failure to state a claim upon which relief could be granted. (Dkt. 6.) Five days after the deadline to respond, 'Plaintiff filed a Motion for Leave to File First Amended Complaint (Dkt. 13), and a First Amended Complaint (Dkt. 14). Although Plaintiffs time to file an amendment as of right under Federal Rule 15(a)(1)(B) had expired, the Court granted the motion and denied as moot Defendants’ Motion to Dismiss. (Dkt. 15.)1 The Court added, “Plaintiffs counsel is cautioned to carefully abide by pleading deadlines under the Federal Rules going forward.” (Id.)

Defendants filed the present Motion to Dismiss the Amended Complaint on February 4; 2014. (Dkt. 17.) Plaintiffs response brief was due on or before Febru[685]*685ary 28, 2014. See E.D. Mich. LR 7. 1(e)(1)(B). On March 21, 2014, Plaintiff having failed to file any response, the Court ordered Plaintiff to show cause why the motion should not be granted as unopposed. (Dkt. 25.) On March 25, 2014, Plaintiff filed a Motion to Extend/Enlarge Time to File Answer to Defendant’s Motion to Dismiss the Amended Complaint, with its Response in Opposition to the Motion to Dismiss attached as an exhibit. (Dkt. 26.) Defendants immediately opposed Plaintiffs motion for extension. (Dkt. 27.) Then on April 11, 2014, Defendants filed a Reply Memorandum of Law in support of their Motion to Dismiss. ' (Dkt. 28.) The Court heard oral arguments on the motion at a hearing on June 19, 2014.

B. Allegations of the Amended Complaint

The following allegations are from the First Amended Complaint. (Dkt. 14, hereinafter “Am. Compl.”)

On August 19, 2011, Delta and Anheu-ser-Busch 2 entered into an agreement for Delta to market Anheuser-Busch’s products in Iraq (“Letter Agreement”).3 (Am. Compl. ¶ 32.) Before the Letter Agreement was executed, “Anheuser-Bush misrepresented to Delta their intentions regarding the full contract, rewards, and bonuses. for sales.” (Am. Compl. ¶ 28.) Specifically, “to induce Delta to accept a Letter-Agreement Anheuser-Bush promised Delta bonus monies on a then-existing bad faith intent to break the promise.” (Am. Compl. ¶ 29.) Anheuser-Busch’s intent was “to mislead Delta into accepting a brief Letter-Agreement with continuing brief extensions while realizing large profits from Delta’s efforts, then strategically terminating Delta on bogus, charges regarding [the Foreign Corrupt Practices .Act],” thus avoiding payment of the promised bonuses as well as “stealing Delta’s trade secrets through a bogus bribery investigation.” (Am. Compl. ¶¶ 30-31.)

The Letter Agreement was to automatically terminate effective March 31, 2012, unless Delta placed an offer after that date and Anheuser-Busch accepted it, and no new agreement had been proposed. (See Am. Compl. ¶ 33; Letter Agreement ¶ 6.) In that case, the Letter Agreement would be “extended automatically for further periods of three (3) months, commencing on 1st April and expiring automatically at the end of each new term,” absent a new proposed agreement. (Id.)

Delta and Anheuser-Busch continued to operate under the Letter Agreement until November 28, 2012, when Anheuser-Busch terminated the relationship. (See Am. Compl. ¶ 35.) While the Letter Agreement provided for termination with or without cause (Letter Agreement ¶ 6), An-heuser-Busch based the termination on a clause of the Letter Agreement that prohibited Delta from violating the Foreign Corrupt Practices Act (“FCPA”) of the United States “or similar laws of other countries.” (See Am. Compl. ¶¶ 34-35.)

After this termination, in “December 2012, and thereafter, Anheuser-Busch [686]*686made and published false defamatory statements which precisely stated that Delta Alcohol Distributors paid bribes and committed the serious criminal offense of violation of the Foreign Corrupt Practices Act.” (Am. Compl. ¶ 36.) These statements “disclosed, and/or communicated, and/or ‘leaked,’ and/or told Iraqi official(s), and/or Iraqi business persons, and/or Delta’s competitors, and/or Lebanese competitors, and/or other government officials and business interests that Delta paid bribe(s) in Iraq in violation of FCPA.” (Am. Compl. ¶ 47.)

Also after terminating the Letter Agreement, “under the guise of a bribery investigation against Delta,” Anheuser-Busch sought and acquired Delta’s trade secrets “by conducting investigations with Iraqi officials, Iraqi persons, Iraqi and Arab businessmen, and others pursuant to Anheuser-Bush’s false statements that Delta violated the FCPA, and Iraqi bribery law,” and other wrongful means. (Am. Compl. ¶¶ 74-75.) Anheuser-Busch “used Delta’s trade secrets to distribute its products in Iraq.” (Am. Compl. ¶ 40.) These trade secrets included “knowledge regarding Iraqi officials,” “Iraqi informants for marketing and use in covert intelligence gathering for the marketing of alcohol,” “strategies for employees’ safety involved in alcohol business in an Islamic Republic,” “secrets in gaining advantage over its competitors,” “knowledge of Iraqi community leaders,” “knowledge on religious officials for marketing and use in covert intelligence gathering for the marketing of alcohol and employees’ safety in an Islamic Republic and gaining advantage over its competitors,” “compilation of business design(s) based on unknown ‘or not readily ascertainable’ business formu-láis) and model(s) designed by Delta to dominate the entire Iraqi alcohol market,” and “business formula(s) designed by Delta to gain advantage over its competitors in marketing alcohol in Baghdad and Northern Iraq.” (Am. Compl. ¶ 61.)

The First Amended Complaint alleges five counts: defamation, misappropriation of trade secrets, unjust enrichment, fraud, and fraudulent inducement. (Am. Compl. at 9-18.)

II. ANALYSIS

A. Delta’s Motion to Extend Time to Respond

Requests for extensions of time are governed by Federal Rule of Civil Procedure 6. The Rule provides, in relevant part, that “[w]hen an act may or must be done within a specified time, the court may, for good cause, extend the time ... (B) on motion made after the time has expired if the party failed to act because of excusable neglect.” Fed.R.Civ.P.

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28 F. Supp. 3d 682, 2014 WL 2815743, 2014 U.S. Dist. LEXIS 84687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delta-alcohol-distributors-v-anheuser-busch-international-inc-mied-2014.