Essroc Cement Corp. v. CTI/D.C., Inc.

740 F. Supp. 2d 131, 2010 U.S. Dist. LEXIS 101381, 2010 WL 3786544
District Court, District of Columbia·Decided September 27, 2010·No. Civil Action 08-2196 (CKK)·Published·Cited by 15 cases

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

Plaintiff Essroc Cement Corp. (“Plaintiff’) brings the present action against Defendant CTI/D.C., Inc. (“Defendant”) (together, the “Parties”), asserting causes of action for breach of contract, unjust enrichment, and fraud in connection with Plaintiffs extension of credit and provision of goods, materials, and services to Defendant in the spring and fall of 2008. Presently before the Court is Plaintiffs [26] Motion for Summary Judgment, which Defendant has failed to oppose or respond to in any fashion. After reviewing Plaintiffs submissions, including the attachments thereto, the relevant authorities, and the record as a whole, the Court shall GRANT-IN-PART and DENY-IN-PART Plaintiffs Motion for Summary Judgment, for the reasons set forth below.

I. BACKGROUND

A. Factual Background

1. The Parties and their Contractual Relationship

Plaintiff, a Pennsylvania corporation with its principal place of business within that state, is engaged in the business of producing and providing cement to clients throughout the United States, Canada, and Puerto Rico. 1 Pl.’s Stmt., Docket No. [26], *135 ¶¶ 1, 3. Defendant, incorporated and operating at least in part in the District of Columbia, is in the business of providing ready-mix concrete to commercial and residential developers. Pl.’s Stmt. ¶¶ 2, 4; Y. Answer, Docket No. [10-2], ¶¶ 2, 5.

On or about January 23, 2008, the Parties entered into an agreement, the primary purpose of which was to enable Defendant to purchase goods, materials, and services — most notably, cement — on credit from Plaintiff (the “Credit Agreement”). PL’s Stmt. ¶¶ 5-6 and Ex. A (Credit Agreement). 2 The terms of the Credit Agreement itself are relatively sparse, contemplating that individual sales of concrete would be governed by more specific terms and conditions to accompany such sales. Specifically, the Credit Agreement provides, in relevant part:

All sales will be subject to further Terms and Conditions as provided, as revised from time to time without notice to [Defendant], and such revised Terms and Conditions shall prevail on all shipments after the date of revision regardless of when the related orders were received.

Pl.’s Stmt. Ex. A (Credit Agreement) at 1.

Subsequently, as contemplated by the Credit Agreement, each individual delivery of cement products from Plaintiff to Defendant was followed by an invoice covering one or more deliveries, which set forth the terms and conditions of the sale (the “Terms and Conditions”). 3 PL’s Stmt. ¶ 10 *136 and Ex. C (PL’s Req. for Admis.) SubExs. A-AA (Invoices and Bills of Lading). The Terms and Conditions accompanying each sale supplemented the Credit Agreement, and fleshed out the contours of the Parties’ contractual relationship. Specifically, with respect to payment, the Terms and Conditions provided that invoices were “payable in full not later than the last day of the month following the month in which shipments were made.” 4 PL’s Stmt. Ex. B (Terms and Conditions) at 1. Balances past due would be “subject to a service charge of one and one half percent (1-1/2%) per month or the highest rate permissible by law.” Id. And, in the event Defendant failed to comply with the terms of payment, the Terms and Conditions reserved to Plaintiff the right to terminate deliveries and to exercise its right to recover for all unpaid accounts. Id.

2. The Deterioration of the Parties’ Commercial Relationship

Beginning in April 2008, Plaintiff periodically supplied to Defendant various cement products pursuant to the Credit Agreement and the Terms and Conditions. Id. ¶¶ 12-28. From the outset, the relationship was a troubled one, as Defendant never paid any of the invoices issued by Plaintiff. Id. ¶ 43. On or about September 8, 2008, prompted by the ballooning number of invoices that remained unpaid by Defendant (at least sixteen invoices had been issued, with a total amount outstanding approaching $500,000), Plaintiff advised Defendant that, going forward, Defendant would be required to purchase cement on a cash-on-delivery basis. 5 Id. ¶¶ 13-28, 44^5.

Thus, beginning on September 8, 2008 and continuing at least through September 17, 2008, Plaintiff supplied Defendant with cement exclusively on a cash-on-delivery basis. Id. ¶¶ 29-34. Despite this arrangement, between September 11, 2008 and September 18, 2008, Defendant proceeded to issue to Plaintiff a series of bad checks. 6 All in all, Defendant issued a total of four checks to Plaintiff in the aggregate amount of $27,224.01, purportedly in payment of six separate invoices issued by Plaintiff. Id. ¶¶ 47, 49, 52. All four checks were returned for insufficient funds. Id. And, in all four instances, it is undisputed that Defendant knew that it held insufficient funds in its bank account to cover the amounts designated at the time the checks were issued. Id. ¶¶ 48, 50-51, 53.

3. The Defendant’s Assurances and Plaintiff’s Demand

On or about September 29, 2008, “[f]or purposes of inducing [Plaintiff] to supply it with additional cement,” Defendant told Plaintiff that it would convert a certificate of deposit (“CD”) to pay Plaintiff $240,000 towards its past-due balance. Id. ¶ 56. However, Defendant actually had no intention of converting the CD at the time these representations were made to Plaintiff. Id. ¶ 57. Plaintiff nevertheless supplied to Defendant approximately $33,153.96 worth of cement between September 30, 2008 *137 and October 9, 2008. 7 Id. ¶¶ 38-39. It is undisputed that Plaintiff never received payment for these goods. Id. ¶¶ 42-43, 59; V. Answer ¶ 21.

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Essroc Cement Corp. v. CTI/D.C., Inc., 740 F. Supp. 2d 131, 2010 U.S. Dist. LEXIS 101381, 2010 WL 3786544 (D.D.C. 2010).

740 F. Supp. 2d 131 (Essroc Cement Corp. v. CTI/D.C., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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