Fort Howard Paper Co. v. Standard Havens, Inc.

119 F.R.D. 397, 1988 U.S. Dist. LEXIS 2150, 1988 WL 21123
CourtDistrict Court, E.D. Wisconsin
DecidedMarch 14, 1988
DocketNo. 85-C-1293
StatusPublished
Cited by2 cases

This text of 119 F.R.D. 397 (Fort Howard Paper Co. v. Standard Havens, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fort Howard Paper Co. v. Standard Havens, Inc., 119 F.R.D. 397, 1988 U.S. Dist. LEXIS 2150, 1988 WL 21123 (E.D. Wis. 1988).

Opinion

DECISION AND ORDER

WARREN, Chief Judge.

Plaintiff Fort Howard Paper Company (“Fort Howard”) bought an air pollution control device called a baghouse from defendant Standard Havens, Incorporated (“Standard Havens”). Pursuant to a 71-page written contract, Standard Havens designed, manufactured and installed the baghouse. The baghouse, however, did not work to the satisfaction of Fort Howard and on August 30, 1985, Fort Howard brought suit stating a cause of action in contract for breach of warranty. The case was tried to a jury during three weeks of September, 1987. On September 30, 1987, the jury returned a 13-question Special Verdict.1 Four of the questions dealt with the issues of hindrance and misuse. Those issues were the subject of motions raised by Fort Howard prior to trial and at the close of testimony. The Court reserved ruling on both occasions.

The issue raised by Fort Howard was whether hindrance and misuse had been properly pled by Standard Havens so as to make them issues for trial. Since the Court now holds that the Special Verdict questions were improperly placed before the jury, the Court hereby grants Fort Howard’s motion for a new trial.2

I.

Fort Howard is a Wisconsin corporation engaged in the business of manufacturing and selling paper products. Its principal place of business is in Green Bay, Wisconsin. Standard Havens, Inc. is a corporation incorporated under the laws of the State of Missouri with its primary place of business in Kansas City, Missouri. Standard Havens is engaged in the business of designing, manufacturing and selling air filtration systems. Also a party to this lawsuit was Continental Casualty Company, an Illinois corporation. Continental Casualty was named as a defendant due to a Performance Bond it held as security for the contract entered into between Fort Howard and Standard Havens.

Fort Howard’s complaint alleged, in part, that the baghouse failed to comply with the Pressure Drop Warranty of the contract. Complaint at paragraphs 9, 13. The complaint also stated, in part, that Fort Howard had performed all of the obligations imposed upon it by the contract. Id. at paragraph 12.3 Standard Havens’ answer responded to paragraph 12 of the complaint, with the following:

Defendant Standard Havens denies each and every allegation contained in Paragraph 12 of plaintiff’s Complaint [399]*399and Standard Havens states specifically and with particularity that Fort Howard has failed to perform obligations imposed upon it under the Contract, including but not limited to the following:
(a) operation of the equipment in accordance with Standard Havens’ instructions and manuals;
(b) sufficient maintenance of the equipment;
(c) operation of the equipment under substantially different conditions than those stated in the specifications;
(d) operation of glass bags on the mesh cages supplied by Standard Havens;
(e) approval by Standard Havens of the specifications on replacement bags furnished by Fort Howard;
(f) operation of the coal fired boiler application at or below the conditions with the fuels shown in Section 1.2 of the Contract, and in accordance with Standard Havens’ written instructions and manuals;
(g) operation of the boilers in accordance with the boiler supplier’s written instructions and manuals;
(h) operation of the equipment in accordance with the application and sizing specifications of Section 1.2 of the Contract;
(i) operation of the coal and waste fired boiler application at or below the gas volume stated within the Contract;
0) maintenance of reasonable operating and maintenance records on boiler operation, baghouse operation and bag failure;
(k) performance of emission test within ninety (90) days of the total flue gas system being available for full load operation, or February 28, 1985, whichever occurs first;
(Z) notification of Standard Havens of the emission testing schedule one (1) week prior to actual testing, allowance of Standard Havens to be present during emission testing and to review the emission test data;
(m) notification of Standard Havens, promptly and in writing, of any alleged failure of the baghouse to perform as warranted;
(n) operation of the equipment at or below the following maximum design conditions:
1. 275°F—425°F;
2. 771,981 actual cubic feet per minute gas flow (maximum);
3. 20 percent by volume moisture in gas (maximum);
4. 3.5 gr/acf maximum dust loading;
5. 110 psig minimum air pressure, as measured at the compressed air header;
6. five (5) foot or less dust level in hoppers, as measured above the hopper discuarge;
(o) maintenance of reasonable operating and maintenance records to verify boiler operations, baghouse operation, and bag failure data;
(p) notification of Standard Havens of pressure drop testing schedule one (1) week prior to actual testing allowance of Standard Havens to be present during testing and to review test data;
(q) notification of Standard Havens in writing within a reasonable time after the discovery of any alleged defect; and
(r) all other requirements of the Contract which have not been performed by Fort Howard.

Answer, at paragraph 9. As an “Additional, Alternative and Affirmative” defense, Standard Havens alleged:

Defendant Standard Havens states that plaintiff has failed to fulfill its obligations under the contract.

Id., at paragraph 19.

Standard Havens also counterclaimed for money allegedly still owing on the contract, for money allegedly owing on spare parts, and for money allegedly owing on certain field service work. Id. at pp. 8-12.

Subsequent to the filing of its counterclaim, Standard Havens sought leave to file a First Amended Answer and Counterclaim. Standard Havens sought to add a counterclaim of fraud in connection with the formation of the contract. In a Deci[400]*400sion and Order dated February 10, 1987, the Court denied leave to amend, holding that the fraud claim would be subject to a valid motion to dismiss. In a Decision and Order dated July 1, 1987, the Court denied Standard Havens’ motion for reconsideration of the February 10 order or, in the alternative, to modify the order making it ripe for interlocutory appeal.

Pursuant to the Court’s standing Order Prior to Final Pretrial Conference Civil Cases, a final pretrial report was prepared by Fort Howard.4 That report included a statement of issues.

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Bluebook (online)
119 F.R.D. 397, 1988 U.S. Dist. LEXIS 2150, 1988 WL 21123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fort-howard-paper-co-v-standard-havens-inc-wied-1988.