EM Medical, LLC v. Stimwave LLC, and Andrea Berry

CourtMissouri Court of Appeals
DecidedJune 15, 2021
DocketED108965
StatusPublished

This text of EM Medical, LLC v. Stimwave LLC, and Andrea Berry (EM Medical, LLC v. Stimwave LLC, and Andrea Berry) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EM Medical, LLC v. Stimwave LLC, and Andrea Berry, (Mo. Ct. App. 2021).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION ONE

EM MEDICAL, LLC, ) No. ED108965 ) Respondent, ) Appeal from the Circuit Court ) of St. Louis County vs. ) 19SL-CC00974 ) STIMWAVE LLC, ) ) Appellant, ) ) Honorable Stanley J. Wallach and ) ) ANDREA BERRY, et al., ) ) Defendants. ) Filed: June 15, 2021

Stimwave LLC (“Stimwave”) appeals the trial court’s denial of its motion to compel

arbitration of claims between EM Medical, LLC (“EM Medical”) and Stimwave in the

underlying suit in this case. 1 We affirm.

1 As explained below, the claims between EM Medical and Stimwave in the underlying suit in this case consist of, (1) EM Medical’s claim alleging Stimwave owed EM Medical money and damages for unpaid commissions earned by EM Medical before the parties’ business relationship was terminated (Count I of EM Medical’s final amended petition); (2) EM Medical’s claims relating to Stimwave’s alleged tortious interference with alleged employment agreements entered into between EM Medical and underlying defendants Andrea Berry, Kaitlin Brenzel, and Ingrid Flaspohler (Counts V, VI, and VII of EM Medical’s final amended petition); (3) EM Medical’s claim relating to Stimwave’s termination of the parties’ alleged franchise relationship (Count VIII of EM Medical’s final amended petition); and (4) Stimwave’s counterclaim relating to EM Medical’s alleged failure to promptly return approximately $148,130 of Stimwave’s medical equipment inventory after the parties’ business relationship had ceased. EM Medical also filed breach of contract claims against underlying defendants Andrea Berry, Kaitlin Brenzel, and Ingrid Flaspohler. The trial court’s decision denying Stimwave’s motion to compel arbitration certified the decision for appeal as to all claims between EM Medical and Stimwave in the underlying suit pursuant to Missouri Supreme Court Rule 74.01(b) (2020), and found there was no just reason for delay of an appeal. I. BACKGROUND This case arises out of a business relationship between EM Medical, a company with its

principal place of business in St. Louis, County, Missouri, and Stimwave, a company with its

principal place of business in Florida. During the course of the parties’ business relationship,

EM Medical solicited orders for Stimwave’s medical products, and Stimwave made payments to

EM Medical. The parties’ business relationship began in January 2016 and ended in June 2018.

It is undisputed EM Medical and Stimwave’s business relationship was based on an

agreement; however, the parties dispute the type of agreement they had. Specifically, EM

Medical alleges in its final amended petition 2 that the parties’ business relationship was based on

a verbal agreement. In contrast, Stimwave contends in its motion to compel arbitration that the

parties’ relationship was based on a written agreement which Stimwave presented to EM

Medical in January 2016 (“Proposed January 2016 Agreement” or “Proposed Agreement”). The

Proposed January 2016 Agreement is attached as an exhibit to Stimwave’s motion to compel

arbitration.

A. The Proposed January 2016 Agreement

The Proposed January 2016 Agreement, with exhibits, is seventeen pages long and

contains more than fifty paragraphs and subparagraphs of contractual provisions. Paragraph 4

and Exhibit C of the Proposed January 2016 Agreement collectively provide Stimwave would

pay EM Medical commissions for purchase orders solicited by EM Medical under certain

circumstances, with a commission rate of 25% or 20% depending on the particular calendar year.

Another one of the provisions of the Proposed Agreement, subparagraph 17.4, provides in

2 The title of EM Medical’s final amended petition alleges it is a “second amended petition”; however, this Court’s review of the legal file demonstrates the pleading is EM Medical’s third amended petition. To avoid confusion, we will simply refer to this pleading as the “final amended petition.”

2 relevant part that any dispute, controversy or claim between the parties which cannot be resolved

through direct negotiations “shall be settled by binding arbitration.”

Additionally, the first paragraph of the Proposed January 2016 Agreement states in

relevant part: “[This agreement] is effective as of the date signed below . . . by and between

Stimwave . . . and [EM Medical] for the purpose of defining the rights and duties of the parties in

connection with the representation by [EM Medical] of certain [Stimwave] products.” There are

four areas on the Proposed January 2016 Agreement where there is a place for both Stimwave

and EM Medical to sign: (1) on page eleven after subparagraph 17.9 and before any of the

exhibits to the Proposed Agreement; (2) on page fourteen at the bottom of Exhibit B (which is

titled “Territory and Exclusivity”); (3) on page fifteen at the bottom of Exhibit C (which is titled

“Schedule of Commission”); and (4) on page seventeen at the bottom of Exhibit E (which is

titled “Quota”) (collectively “four signature areas on the Proposed Agreement”). Moreover,

before each of the four signature areas on the Proposed Agreement, there are the words,

“AGREED TO AND ACCEPTED BY:” in bold letters.

Stimwave never signed any of the four signature areas on the Proposed Agreement. EM

Medical signed all of the four signature areas on the Proposed Agreement and dated its signature

on page eleven (with a date of January 19, 2016). However, EM Medical did not deliver a

signed copy of the Proposed Agreement to Stimwave at any time during the course of the parties’

business relationship. Furthermore, Stimwave admits in its motion to compel arbitration that

“Stimwave believed, until February of 2020 [during discovery in the instant case], that EM

Medical had not executed [the Proposed January 2016 Agreement].”

3 B. Evidence of Further Negotiations and Business Between the Parties

Approximately one year after the parties’ business relationship began, EM Medical

drafted a new version of the Proposed Agreement which was dated December 4, 2016 (“EM

Medical’s December 2016 Proposal” or “EM Medical’s Proposal”). EM Medical’s December

2016 Proposal was signed by EM Medical on January 1, 2017 and was delivered to Stimwave

sometime in early 2017. Stimwave did not sign EM Medical’s Proposal but instead made

changes to it and returned a revised document to EM Medical. The parties did not subsequently

reach a written agreement executed by both parties but continued in business together until the

termination of the parties’ business relationship.

C. The Termination of the Parties’ Business Relationship and Initial Relevant Procedural Posture

The parties’ business relationship ended on June 25, 2018, when Stimwave wrote a letter

to EM Medical terminating their relationship. Stimwave’s June 25, 2018 letter requested EM

Medical to “cease activities in the representation of Stimwave products” and also stated, “[a]s a

point of reference, [Stimwave] is not in possession of an executed agreement.”

EM Medical filed its initial petition against Stimwave and underlying defendants Andrea

Berry, Kaitlin Brenzel, and Ingrid Flaspohler (collectively “Defendants”) on March 6, 2019.

Subsequently, EM Medical filed its first amended petition against Defendants on July 22, 2019.

EM Medical then filed a motion for partial summary judgment on its July 2019 first

amended petition, along with a statement of undisputed facts and accompanying sworn affidavit

of Michael Reid. According to Reid’s affidavit, he was a member and manager of EM Medical

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EM Medical, LLC v. Stimwave LLC, and Andrea Berry, Counsel Stack Legal Research, https://law.counselstack.com/opinion/em-medical-llc-v-stimwave-llc-and-andrea-berry-moctapp-2021.