Fiore Industries, Inc. v. Ericsson

CourtDistrict Court, D. New Mexico
DecidedJanuary 4, 2021
Docket1:18-cv-01218
StatusUnknown

This text of Fiore Industries, Inc. v. Ericsson (Fiore Industries, Inc. v. Ericsson) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fiore Industries, Inc. v. Ericsson, (D.N.M. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

FIORE INDUSTRIES, INC., a New Mexico Corporation,

Plaintiff,

v. Civ. No. 18-1218 SCY/JFR

John ERICSSON, an individual, and ALGASTAR, INC., a Delaware Corporation,

Defendants.

MEMORANDUM OPINION AND ORDER DENYING SUMMARY JUDGMENT1 Plaintiff Fiore Industries, Inc. brings this lawsuit claiming that Defendants John Ericsson and AlgaStar, Inc. have refused to pay it for support Plaintiff provided in connection with the development of intellectual property related to the accelerated growth of algae. Plaintiff moves for summary judgment on the remaining counts of its complaint: breach of contract, quantum meruit, unjust enrichment, and promissory estoppel. See Plaintiff Fiore Industries, Inc.’s Motion For Summary Judgment And Memorandum In Support Thereof, filed May 11, 2020. Doc. 60. Although the parties agree they reached an oral agreement under which Plaintiff would provide work to Defendants, questions remain about whether payment was conditional on some future event, when any payment would occur, the form of any payment (stock versus cash, for instance), and the amount of any payment. In its motion for summary judgment, Plaintiff presents no facts answering these questions. Because Plaintiff has not met its burden to

1 Pursuant to 28 U.S.C. § 636(c), the parties consented to the undersigned to conduct any or all proceedings and to enter an order of judgment. Docs. 17, 18, 19. demonstrate an entitlement to judgment as a matter of law on the undisputed facts, the Court denies the motion for summary judgment. FACTUAL BACKGROUND Defendant John Ericsson is the President and Chairman of the Board of Defendant AlgaStar, Inc. Plaintiff’s Undisputed Material Fact (“UMF”) No. 1.2 AlgaStar is in the business

of developing technology and products to grow algae for use in biofuels and other applications. UMF No. 2. Jane Barnes is a shareholder of Defendant AlgaStar and served as the project manager, interfacing with Fiore Industries, Inc. (“Fiore”) with respect to the BioStim project that is the subject of this action. UMF No. 3. Fiore is a New Mexico company that has expertise in engineering, testing, facility operations, and information technology. UMF No. 4. Bill Miera is the Chief Executive Officer of Fiore. UMF No. 5. Sometime in approximately 2012 or 2013, Ericsson and AlgaStar approached Miera to request Fiore’s assistance in Ericsson and AlgaStar’s project to develop a system for the accelerated growth of algae. UMF No. 6. At the request of Ericsson and AlgaStar, Fiore became

involved in the project and provided various services, materials, equipment, and expertise, including engineering, laboratory access, testing, and labor that were all vital to the project. UMF

2 Plaintiff’s UMFs are set forth in Doc. 60 at 2-4. The Court’s factual narrative draws from those facts because Defendants’ response does not comply with the local rules’ instructions to set forth a “concise statement of the material facts cited by the movant as to which the non-movant contends a genuine issue does exist.” D.N.M.LR-Civ. 56.1(b). Defendants do not comply with the instructions to number each fact in dispute, or to provide their own additional material facts set forth in separately lettered paragraphs. Instead, Defendants set forth their factual contentions in a long narrative that renders it very difficult for the Court (and Plaintiff, see Doc. 75 at 4-5) to tell which of Plaintiff’s numbered facts are disputed, which portions of the record Defendants rely on to dispute them, and what additional material facts Defendants intend to present. As explained in the Discussion section, looking just at Plaintiff’s asserted facts, Plaintiff has not met its burden on summary judgment. Nonetheless, Defendants should comply with the local rules in the future. No. 7. The work that Fiore provided for the project was of value to the project. UMF No. 8. Fiore incurred approximately $300,000 in expenses and costs relating to its work on the project. UMF No. 9.3 The expenses and costs incurred by Fiore “relating to the project included wages for the labor of employees, purchases of materials, and for use of Fiore’s equipment, materials, and laboratory and office space.” UMF No. 10.

Prior to, and on multiple occasions during Fiore’s work on the project, Ericsson and AlgaStar verbally promised to pay Fiore for the work and services Fiore provided for the project. UMF No. 11. Ericsson and AlgaStar promised to pay Fiore for the work Fiore provided because the work Fiore provided was of value to the project. UMF No. 12. Fiore’s decision to cease work on the project was based solely on Ericsson and AlgaStar’s refusal to pay Fiore for its work on the project. UMF No. 14. Fiore never offered to perform for free any work on the project or any work for Ericsson and AlgaStar, nor was any work performed by Fiore voluntary. UMF No. 15. Ericsson and AlgaStar have never compensated Fiore or paid Fiore for the work it performed for the project. UMF No. 18.

PROCEDURAL HISTORY Plaintiff filed its Complaint in federal court on December 26, 2018. Doc. 1. On July 19, 2019, Defendants filed a motion to dismiss. Doc. 12. This was the beginning of Defendants’ claims that no contract existed between the parties. In their memorandum in support of the motion to dismiss, Defendants insisted that “Defendants are not parties to a contract, oral or written, with Plaintiff.” Doc. 13 at 2. In fact, Ericsson signed an affidavit that included the

3 These facts are set forth as background information only. The Court does not reach the issue of Fiore’s damages because it denies the motion for summary judgment. Therefore, the facts relating to Fiore’s damages are not material. following paragraph: “This action arose over a claim of a breach of contract with Plaintiff, a contract that did not exist.” Doc. 13-2 at 5 ¶ 19. On October 30, 2019, the Court entered its Memorandum Opinion and Order granting in part and denying in part Defendants’ motion to dismiss. Doc. 33. The Court found that the Complaint sufficiently stated a claim for breach of contract and that Plaintiff established a prima

facie case of personal jurisdiction over Defendant Ericsson. Id. at 3-12, 14-17. The Court, however, dismissed Plaintiff’s tort claims. Id. at 19-20. On November 12, 2019, Defendants filed an Answer and Counterclaim, alleging: (1) malicious abuse of process; (2) punitive damages; and (3) tortious interference with business expectations. Doc. 35. This pleading, again, alleged that: “The parties never entered into an agreement, oral or written.” Id. at 2 ¶ 10. Further, the counterclaim alleged that Plaintiff brought this lawsuit without probable cause to believe that a contract existed, entitling Defendants to damages. Id. On December 3, 2019, Plaintiff filed a motion to dismiss the counterclaims. Doc. 37. The Court granted this motion on June 23, finding that the Court lacked subject-matter jurisdiction

over the claim for malicious abuse of process and that Defendants failed to state a claim for tortious interference with business expectations. Doc. 72. The Court denied the request to amend the counterclaims without prejudice to a properly filed motion that complied with the Local Rules. Id. at 12-13. Defendants did not file a motion to amend the counterclaims and so those claims are no longer live. Because the Court has already dismissed Defendants’ counterclaims, it need not now address Plaintiff’s request for summary judgment on these counterclaims. Plaintiff filed the instant motion for summary judgment on May 11, 2020. Doc. 60.

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Fiore Industries, Inc. v. Ericsson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fiore-industries-inc-v-ericsson-nmd-2021.