Fabricor, Inc. v. E.I. DuPont De Nemours & Co.

24 S.W.3d 82, 2000 WL 342694
CourtMissouri Court of Appeals
DecidedMay 30, 2000
DocketWD 53668, WD 53669, WD 53735
StatusPublished
Cited by24 cases

This text of 24 S.W.3d 82 (Fabricor, Inc. v. E.I. DuPont De Nemours & Co.) 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
Fabricor, Inc. v. E.I. DuPont De Nemours & Co., 24 S.W.3d 82, 2000 WL 342694 (Mo. Ct. App. 2000).

Opinion

PATRICIA BRECKENRIDGE, Judge.

E.I. DuPont de Nemours & Co. (DuPont) and Colt Industries, Inc. (Colt), appeal from the trial court’s judgment in favor of Fabricor, Inc., in Fabricor’s action for tortious interference with a business expectancy against DuPont and Colt. On appeal, DuPont and Colt claim that the trial court erred by denying their motions for a directed verdict and judgment notwithstanding the verdict because Fabricor failed to prove that DuPont’s and Colt’s conduct was not justified by their own legitimate economic interests and that there was a causal connection between DuPont’s and Colt’s conduct and Fabricor’s claimed loss of a business expectancy. DuPont and Colt also claim that the trial court erred by submitting the issue of punitive damages to the jury because Fa-bricor failed to prove that DuPont’s and Colt’s conduct was outrageous because of evil motive or reckless indifference to Fa-bricor’s rights, and the trial court erred by refusing to instruct the jury that Fabricor was required to prove its punitive damages claims by clear and convincing evidence. In addition, Colt claims that the trial court erred by refusing to admit evidence of customer complaints regarding Fabricor which Colt received after September 9, 1992, because that evidence was relevant on the issue of justification.

This court issued an opinion on September 7, 1999, affirming the trial court’s judgment in part and reversing in part. We granted DuPont’s motion for rehearing to clarify certain factual matters and to reconsider our holding on the submissibility of Fabricor’s claims for actual and punitive damages based upon DuPont’s tor-tious interference with Fabricor’s business expectancy. Again, this court finds that Fabricor presented substantial evidence of the elements of causation and absence of justification on its claim against DuPont. Therefore, the judgment for liability and actual damages against DuPont for tor-tious interference is affirmed. While this court finds that Fabricor made a submissi-ble case for punitive damages, the trial court erred in instructing the jury on the standard of proof for punitive damages. The punitive damages award against DuPont is reversed and remanded for a new trial. Finally, this court holds that Fabri-cor failed to make a submissible case of tortious interference against Colt because Fabricor did not offer substantial evidence that it had a reasonable business expectancy. The judgment against Colt is reversed.

I. Factual and Procedural Background

In accordance with the appellate standard of review, the following factual summary is presented in the light most favorable to Fabricor. See Davis v. Board of Educ. of the City of St. Louis, 963 S.W.2d 679, 684 (Mo.App.1998). In 1982, Barbara Summers incorporated Fabricor, a fabrication company located in Kansas City, Missouri. Ms. Summers is the sole shareholder and president of Fabricor. Since 1985, Fabricor has employed Ms. Summers’ husband, Kent Summers, as operations manager. Fabricor specializes in interior casework and millwork, such as cabinets, countertops, bathroom vanities and fixtures. It purchases solid surface products and makes them into countertops and other fixtures by cutting the raw sheets, refining them, and placing edges on them. Fabricor or other contractors then install these countertops in residences and commercial enterprises. The process of cutting the raw sheets and re *86 fining them into finished countertops is called “fabricating.”

In the mid-1980s, Fabrieor began purchasing Corian®, a DuPont solid surface material. Fabricators, such as Fabrieor, do not buy Corian® directly from DuPont; rather, they purchase it from distributors. Fabrieor originally purchased Corian® from Colt Industries, which at that time was one of two Corian® distributors for the geographical area in which Kansas City is located. During the year 1986, Fabrieor purchased Corian® from the other distributor for the area. The next year, Fabrieor was persuaded to return to Colt by Bob Lazarony, a sales representative for Colt, because Mr. Summers was impressed by Mr. Lazarony’s helpfulness in passing new technology along to Fabrieor and in assisting Fabrieor in developing its residential business.

In 1989, Mr. Lazarony told Mr. and Ms. Summers about a program offered by DuPont known as the certified fabricator/installer (CF/I) program. Under this program, DuPont would certify fabricators and installers who were sponsored by a distributor in the fabricator’s geographical area. CF/Is could advertise that they were certified by DuPont, and would benefit from DuPont’s extensive marketing of Corian®. Another benefit was that a CF/I could buy Corian® from any distributor in the country at a lower price than was available to other customers. However, if a CF/I bought Corian® from a distributor outside the CF/I’s geographical area for a project not located within that distributor’s geographical area, the distributor had to pay a “passover” payment of ten percent to the distributor for the CF/ I’s home geographical area.

Colt sponsored Fabricor’s successful application to become certified in DuPont’s program. Ron Faught, territory manager for DuPont, Mr. Lazarony on behalf of Colt, and Ms. Summers, as president of Fabrieor, executed a two-year CF/I contract that was in effect from October 13, 1989 until October 12, 1991. Fabrieor, as the CF/I, was obligated under the agreement to maintain “a high level of quality workmanship.” When this first CF/I agreement expired, Mr. Faught and Ms. Summers executed a two-year renewal contract on December 12, 1991. This agreement, in the form DuPont was executing with its CF/Is in 1991, had the additional requirements that the CF/I “maintain a high level of customer service,” “investigate and resolve customer complaints,” and maintain a sound financial relationship with the CF/I’s distributor.

The CF/I program was a part of DuPont’s marketing plan to expand its sales of Corian®. Its marketing plan also included the active pursuit of national commercial accounts. In early 1992, DuPont negotiated a program with Marriott International whereby Marriott would specify Corian® for all its solid surface needs in its upscale hotels. DuPont guaranteed a ceiling price to Marriott and assured Marriott of the quality of its product and the quality of the workmanship of its system of fabricators and installers. DuPont also offered to provide Marriott with a list of distributor-recommended CF/Is to assist Marriott’s general contractors in selecting a fabricator. The Marriott specifications guidebook encouraged its general contractors, when beginning the bidding process on a particular project, to call DuPont and receive a list of CF/Is in the area of the project. Marriott or its general contractor then had the option of contacting those CF/Is for pricing.

Information about DuPont’s arrangement with Marriott was sent to the distributors, who forwarded it to the CF/Is. This program came to be known as the “Marriott offering.” Fabricators interested in participating in the Marriott offering were directed to submit their name to their distributor who would forward the name to the DuPont coordinator of the CF/I list for the Marriott offering. This referral system was in place by October of 1992.

*87 Prior to this time, Mr.

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Bluebook (online)
24 S.W.3d 82, 2000 WL 342694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fabricor-inc-v-ei-dupont-de-nemours-co-moctapp-2000.