Federal Leasing, Inc. v. Amperif Corp.

840 F. Supp. 1068, 1993 U.S. Dist. LEXIS 18776, 1993 WL 546410
CourtDistrict Court, D. Maryland
DecidedNovember 23, 1993
DocketCiv. S 87-2435
StatusPublished
Cited by16 cases

This text of 840 F. Supp. 1068 (Federal Leasing, Inc. v. Amperif Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Leasing, Inc. v. Amperif Corp., 840 F. Supp. 1068, 1993 U.S. Dist. LEXIS 18776, 1993 WL 546410 (D. Md. 1993).

Opinion

MEMORANDUM OPINION

SMALKIN, District Judge.

This matter is before the Court on cross-motions for summary judgment as to both the Plaintiffs claim and as to the Defendant’s counterclaim. The motions have been duly briefed, and no oral argument is deemed necessary. Local Rule 105.6. (D.Md.).

I. Factual Background

Plaintiff and Counter-Defendant, Federal Leasing, Inc. (“Federal”) brokers Government contracts. In essence, Federal buys contract rights from a Government contractor and assigns the rights to a bank. Defendant and Counter-Plaintiff, Amperif Corporation (“Amperif’), manufactures and assembles computer memory devices. Federal and Amperif entered into a purchase agreement whereby Federal would purchase rights and monies due under various contracts made between Amperif and the Government. The purchase agreement did not specify the particular contracts but rather provided the general terms and conditions governing the Amperif/Federal relationship. Under the purchase agreement, the specific contracts were conveyed from Amperif to Federal through *1070 delivery orders. The delivery orders specifically referenced and incorporated the terms and conditions of the purchase agreement.

During the course of the Amperif/Federal relationship, the two contracts that are at issue in this case were conveyed by Amperif to Federal through delivery orders. The first contract, the Naval Weapons Center (“NWC”) Contract, is the subject of Federal’s claim against Amperif. The second contract, the “1978 Contract,” is the basis of the Amperif claim against Federal. The specific obligations between Amperif and the Government pursuant to these contracts are not at issue in this case and, therefore, need no in-depth discussion.

Highly relevant to this action, however, is the fact that Federal subsequently assigned its rights under these two contracts to a third party, First National Bank of Missoula (“First Bank”). 1 Although not a party to this action, First Bank plays an instrumental role. First Bank sued Federal and Amperif in the United States District Court for the District of Montana (hereinafter. “Montana Action”), alleging that a modification 2 to the NWC Contract was not “duly authorized” by the Government and, therefore, Amperif and, subsequently, Federal had failed to convey a valid contract as warranted. (Exs. to Aff. of G. Stewart Webb, Jr. [hereinafter Webb Aff. Exs.], Vol. 1, Ex. A at 3-9).

The District Court in Montana dismissed Amperif from the action for lack of personal jurisdiction, and Federal defended and ultimately prevailed against First Bank in the action. Federal claims that the Purchase Agreement’s terms required Amperif to defend against First Bank in the Montana suit, and Federal seeks in this action to recover $251,930.71 in attorneys fees, costs, and expenses incurred in defending the Montana Action.

Amperifs counterclaim against Federal stems from the uncontested fact that First Bank withheld approximately $129,000 due and payable to Amperif under the 1978 Contract as a set-off in the Montana Action. First Bank paid those sums to Federal in December, 1992, after the Montana Action concluded. Amperif now seeks to recover those sums from Federal.

II. Standard for Summary Judgment

A motion for summary judgment will be granted when the moving party demonstrates through pleadings, depositions, answers to interrogatories, admissions on file, and affidavits, if any, that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). A party opposing summary judgment must go beyond the pleadings and identify with specificity facts supporting the existence of a disputed fact. Fed.R.Civ.P. 56(e); Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). Furthermore, the facts presented in the opposition must be sufficient to preclude a motion for directed verdict when taken as true and afforded all justifiable inferences on the opposing party’s behalf, considering the relevant proof burden. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251, 255, 106 S.Ct. 2505, 2511, 2513, 91 L.Ed.2d 202 (1986); United States v. Diebold, 369 U.S. 654, 655, 82 S.Ct. 993, 993, 8 L.Ed.2d 176 (1962).

III. Plaintiffs Motion and Defendant’s Cross-Motion for Summary Judgment-Breach of Contract: The Duty to Defend Against the Montana Action

Federal seeks summary judgment against Amperif on two issues. First, Federal asks the Court to grant summary judgment as to Amperifs contractual duty to defend the *1071 Montana Action brought by First Bank. (Mem. in Supp. of Mot. of PI. Federal Leasing, Inc. for Summ.J. on Am.Compl. [hereinafter Federal’s Mem.Re.: Am.Compl.] at 3). Federal contends that the Federal/Amperif contract encompassed by the Purchase Agreement and Delivery Orders unambiguously provides that Amperif will defend any suits contesting the title or interest in the government contract payments or equipment. Federal argues that the suit brought by First Bank and defended by Federal was a suit within the meaning of the contract, and that, as Maryland law governs the contract interpretation, this Court should construe the contract terms and award summary judgment to Federal regarding Amperif s duty to defend the Montana Action. In addition, Federal requests that the Court award summary judgment in the amount of $251,930.71 in attorneys fees, costs, and expenses incurred by Federal in defending the suit. 3

Defendant Amperif asserts in its opposition and cross-motion for summary judgment that Federal’s claim is barred by the statute of limitations. Alternatively, Amperif contends that the Montana Action is not a suit within the meaning of the contract. Finally, Amperif argues that even if summary judgment were to be granted regarding its liability to defend the Montana Action, factual disputes would exist as to the amount for fees, costs, and expenses and, therefore, summary judgment is not available as to the whole of the matter.

A. Statute of Limitations

Federal initially filed suit against Amperif on September 8, 1987, after Amperif refused to defend the Montana Action as requested by Federal in January, 1986. {See Compl. ¶ 45; Answer ¶ 3 (documenting Federal’s request). 4 The proceedings were stayed by this Court on September 1, 1988, pending the outcome of the Montana Action.

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Cite This Page — Counsel Stack

Bluebook (online)
840 F. Supp. 1068, 1993 U.S. Dist. LEXIS 18776, 1993 WL 546410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-leasing-inc-v-amperif-corp-mdd-1993.