Fontenelle Equip. v. PATTLEN ENTERPRISES

629 N.W.2d 534, 262 Neb. 129
CourtNebraska Supreme Court
DecidedJuly 6, 2001
DocketS-99-1408
StatusPublished

This text of 629 N.W.2d 534 (Fontenelle Equip. v. PATTLEN ENTERPRISES) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fontenelle Equip. v. PATTLEN ENTERPRISES, 629 N.W.2d 534, 262 Neb. 129 (Neb. 2001).

Opinion

629 N.W.2d 534 (2001)
262 Neb. 129

FONTENELLE EQUIPMENT, INC., a Nebraska corporation, Appellant,
v.
PATTLEN ENTERPRISES, INC., doing business as Midwest Turf & Irrigation, Appellee.

No. S-99-1408.

Supreme Court of Nebraska.

July 6, 2001.

*537 James T. Gleason, P.C., Omaha, of Stalnaker, Becker, Buresh, Gleason & Farnham, P.C., for appellant.

Paul R. Elofson, Omaha, of McGill, Gotsdiner, Workman & Lepp, P.C., for appellee.

HENDRY, C.J., and WRIGHT, CONNOLLY, GERRARD, STEPHAN, McCORMACK, and MILLER-LERMAN, JJ.

PER CURIAM.

This appeal presents the question whether the Equipment Business Regulation Act, Neb.Rev.Stat. ch. 87, art. 7 (Reissue 1994), applies to the relationship between Fontenelle Equipment, Inc. (Fontenelle), a dealer of outdoor power equipment, and Pattlen Enterprises, Inc., doing business as Midwest Turf & Irrigation (Pattlen), a distributor of Toro power lawn and garden equipment.

BACKGROUND

Fontenelle is engaged in the sale and repair of outdoor power equipment in Bellevue, Nebraska. In 1984, Fontenelle, then a sole proprietorship owned by Daniel Fischer, began carrying the Toro line of outdoor power equipment which was, at that point, distributed by Midwest Toro, Inc. Upon commencing the distribution relationship, Fontenelle and Midwest Toro entered into a sales account agreement and a service dealer agreement. Under the sales account agreement, Midwest Toro agreed to sell Toro parts and equipment to Fontenelle.

Under the service dealer agreement, Fischer agreed to maintain a service shop with adequate equipment, tools, and parts stock consistent with the recommendations of Toro. Midwest Toro agreed to maintain an adequate inventory of Toro parts to effectively support the efforts of Fontenelle.

At some point after Fischer and Midwest Toro began their business relationship, Fischer incorporated his business to form Fontenelle Equipment, Inc., in which Fischer, his wife, and another individual were shareholders. Also, Midwest Toro, Inc., at some point became Pattlen Enterprises, Inc., doing business as Midwest Turf & Irrigation. The business relationship between Fontenelle and Pattlen continued after the changes in the businesses' entity structures.

Over the course of Fontenelle businesses' relationship with Pattlen and Midwest Toro, Fontenelle had carried such Toro power equipment as commercial- and homeowner-grade lawnmowers; snow blowers; garden hoses; string trimmers; and garden tillers, used to disturb the soil. Fischer testified that over the course of the relationship and through Fontenelle's normal course of business, Fontenelle had accumulated a large number of spare parts for Toro equipment.

In August 1997, the distribution relationship between the parties ended and Fontenelle ceased carrying the Toro product line. After the relationship ended, Fontenelle requested that Pattlen repurchase the unused, resalable Toro parts, which Fontenelle had accumulated over the years, at 85 percent of the retail price. Fontenelle attempted to return the parts *538 to Pattlen, but Pattlen refused to accept them. Fontenelle then filed this action under the Equipment Business Regulation Act in an attempt to compel Pattlen to repurchase the unused, resalable spare parts at 85 percent of the retail price.

In its operative petition, Fontenelle asserted that it was a dealer of equipment used for horticultural purposes pursuant to the act and that such equipment was supplied by Pattlen. Fontenelle alleged that Pattlen gave Fontenelle oral notice that the commercial relationship between them was terminated and did not enumerate any of the reasons listed in § 87-705(1) for such termination. Further, Fontenelle alleged that it sent Pattlen a letter requesting that Pattlen repurchase parts and equipment from Fontenelle pursuant to the provisions of the act and that Pattlen refused to repurchase the parts. Pattlen denied the allegations and filed a counterclaim alleging that Fontenelle had purchased parts and equipment from Pattlen after the end of their relationship and that Fontenelle owed Pattlen $350.23 for such parts and equipment.

Fontenelle and Pattlen each filed motions for summary judgment. In granting Pattlen's motion for summary judgment and denying Fontenelle's motion for summary judgment, the court addressed the issues as follows: First, the district court addressed the termination of the agreement between Fontenelle and Pattlen. The court determined that "[a]lthough the matter [sic] in which it was terminated is in dispute, it is my finding, at this juncture, the greater weight of the evidence shows the termination to be one reached by mutual agreement of the parties." The court then turned to the application of the act and determined that the act was not applicable in the case at bar.

The district court determined that there was no oral or written agreement between Fontenelle and Pattlen whereby Fontenelle agreed to maintain an inventory of equipment, attachments, or repair parts. Second, the court determined that because the agreement ended by mutual agreement as opposed to the supplier terminating the agreement, the act does not apply. Next, the court stated that

although it appears to be a dispute between the parties, it is my finding and conclusion, by a greater weight of the evidence, that [Fontenelle] has failed to establish that the agreement and business relationship between the parties constituted a "dealer agreement" as defined under the Equipment Business Regulation Act.

Finally, after considering the legislative findings set forth in § 87-702, the district court determined that the act does not apply to this case because under the act's definition of "equipment," equipment used for horticultural purposes must involve an agricultural or industrial use and because the equipment at issue in this case was not for an agricultural or industrial use.

Fontenelle appealed the order of the district court that denied Fontenelle's motion for summary judgment and granted Pattlen's motion for summary judgment. We moved the case to our docket pursuant to our authority to regulate the dockets of the appellate courts.

ASSIGNMENTS OF ERROR

Fontenelle assigns, restated, that the district court erred in determining that (1) the Equipment Business Regulation Act did not apply, (2) § 87-703(5) was ambiguous and in need of construction, (3) there was no dealer agreement between the parties, and (4) the termination of the agreement between the parties was done by mutual agreement.

*539 STANDARD OF REVIEW

Summary judgment is proper only when the pleadings, depositions, admissions, stipulations, and affidavits in the record disclose that there is no genuine issue as to any material fact or as to the ultimate inferences that may be drawn from those facts and that the moving party is entitled to judgment as a matter of law. Daniels v. Allstate Indemnity Co., 261 Neb. 671, 624 N.W.2d 636 (2001). In reviewing a summary judgment, an appellate court views the evidence in a light most favorable to the party against whom the judgment is granted and gives such party the benefit of all reasonable inferences deducible from the evidence. Adams v. State, 261 Neb. 680, 625 N.W.2d 190 (2001).

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Fontenelle Equipment, Inc. v. Pattlen Enterprises, Inc.
629 N.W.2d 534 (Nebraska Supreme Court, 2001)

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629 N.W.2d 534, 262 Neb. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fontenelle-equip-v-pattlen-enterprises-neb-2001.