Fred A. Beck Co. v. Joseph E. Seagram & Sons, Inc.

576 N.E.2d 1356, 1991 Ind. App. LEXIS 1404, 1991 WL 166238
CourtIndiana Court of Appeals
DecidedAugust 29, 1991
DocketNo. 49A02-9101-CV-2
StatusPublished
Cited by1 cases

This text of 576 N.E.2d 1356 (Fred A. Beck Co. v. Joseph E. Seagram & Sons, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred A. Beck Co. v. Joseph E. Seagram & Sons, Inc., 576 N.E.2d 1356, 1991 Ind. App. LEXIS 1404, 1991 WL 166238 (Ind. Ct. App. 1991).

Opinions

STATON, Judge.

Fred A. Beck Company, Inc. ("Beck") appeals a grant of summary judgment in favor of Joseph E. Seagram & Sons, Inc. ("Seagram"). Beck presents us with the sole issue of whether Seagram's claim for the price of goods delivered to Beck was barred by a one-year contractual limitation period.

We reverse.

Seagram, a manufacturer of alcoholic beverages, and Beck, a wholesale distributor of alcoholic beverages, entered into a Distributorship Agreement ("Agreement") in August 1978. The agreement was renewed for two successive one-year periods; thereafter, the agreement was renewed on a monthly basis. In July 1987, Seagram terminated the agreement after giving Beck thirty days' notice.

During May, June and September, 1987, Seagram invoiced Beck for alcoholic beverages shipped earlier in 1987. In July 1987, Beck ceased doing business. At Seagram's request, Beck transferred its inventory of Seagram products to another wholesaler.

On June 7, 1988, Beck issued a letter to Seagram, disputing Seagram's account balance of $374,876.77 and claiming credit was due for transferred inventory. Beck additionally asserted a right of set-off against the invoice amount because of unreasonable notice and the lack of a compensatory payment upon termination.

On April 7, June 14, and June 16, 1988, Seagram issued credit memorandums reflecting credits due Beck for the transfer of inventory.

By letter dated April 13, 1989, Seagram's Assistant General Counsel informed Beck that Seagram considered Beck's claim for set-off unfounded. Counsel requested that Beck respond within 30 days to Seagram's demand for payment of $257,581.94, the balance remaining after credits to Beck for transferred inventory.

On October 20, 1989, Seagram brought suit against Beck to collect $257,581.94. On June 18, 1990, the trial court granted summary judgment in favor of Seagram:

"Comes now the Court, and having heard the arguments of counsel and having reviewed the legal memorandums filed by the parties, now finds that no genuine issues of material fact exist regarding Plaintiff's Motion for Summary Judgment, and therefore Plaintiffs have a right to judgment as a matter of law.
In so holding the Court has considered the following:
1. On August 19, 1987, Defendant, by letter, requested credits against the balance owed to Plaintiff in the amount of $117,294.88. In a letter of June 6, 1988, Defendant indicates that Defendant does not owe Plaintiff $874,876.77. If the credit claimed by Defendant in August of 1987 is subtracted from the amount demanded by Plaintiff as of June 6, 1988, a balance exists of $257,581.94.
2. By letter of April 18, 1989, Plaintiff? made a final demand upon Defendant of $378,617.28, less credits of $121,-025.29, for a total of $257,581.94. This figure is exactly the same as Plaintiff's previous demand of $874,876.77, less Defendant's claimed credits of $117,294.83.
3. That Plaintiff's letter of April 18, 1989 appears to be the first time that Plaintiff acknowledged Defendant's right to the credits Defendant had claimed in August of 1987, therefore Plaintiff's final claim as to the specific amount owed by Defendant to Plaintiff was not made until April 18, 1989. (While Defendant, in its letter of June 7, 1988, alleged that only $226,088.45 was due, Defendant has failed to show the basis for that number. As previously stated, subtracting Defendant's claimed credits from Plaintiff's original demand yields $257,581.94, not $226,083.45.)
4. Since Plaintiff's lawsuit was filed within one year from the date of Plaintiff's final demand, ie., April 13, 1989, paragraph 16 of the distribution agreement between Plaintiff and Defendant does not act as a bar to Plaintiff's claim. Further, since Defendant did not raise [1358]*1358the arbitration provision contained within paragraph 16 in its Answer, or in its Memorandum in Opposition To Seagram's Motion for Summary Judgment, Defendant has waived any argument with respect to the issue of arbitration.
5. While Defendant may have a valid counterclaim with respect to Plaintiff, the Court finds that said counterclaim has to do with damages resulting from the termination of the distribution agreement and not with respect to the value of goods shipped to Defendant, which is the subject of Plaintiff's Complaint. Since Defendant's counterclaim will not effect -[sic] the value of the goods shipped to Defendant, it would be improper to withhold judgment with regard to the value of these goods."

Record, pp. 161-62.

On July 30, 1990, the trial court issued an order certifying the entry of summary judgment as a final judgment2 This appeal ensued.

Beck presents a triparte argument in support of its claim that Seagram's lawsuit was commenced after the expiration of a contractual one-year time limitation. First, Beck claims that invoices from Seagram setting forth payment terms of "Net 80 Days" were incorporated into the Distributorship Agreement. Beck further contends that the Agreement clearly provided that any action (other than a suit to enforce arbitration) must be commenced within one year after the cause of action accrues. Third, Beck argues that the contract was breached more than one year before Seagram filed its complaint.

Beck suggests that a breach occurred on the thirtieth day after Seagram issued the September 1987 invoice. Alternatively, Beck claims that Seagram's cause of action arose when Beck refused to pay the out standing invoice amounts, despite an anticipated credit adjustment. Finally, Beck argues that the latest possible date of accrual of Seagram's cause of action was June 16, 1988, the date on which Seagram issued its final Credit Memo to Beck. '

Seagram responds that its claim is not based on the Distributorship Agreement, but upon separate invoices for product sold and delivered to Beck. Secondly, Seagram contends that the one-year limitations period found in Section 16 of the agreement applies only to arbitration proceedings. Finally, Seagram argues that its action was commenced within one year after Seagram's counsel demanded payment of an adjusted account balance and Beck failed to respond.

On an appeal from a summary judgment, we will reverse only where the record reveals a genuine issue of material fact or the trial court incorrectly applied the law. Any doubt as to a fact, or an inference to be drawn, is resolved in favor of the non-moving party. Mauller v. City of Columbus (1990), Ind.App., 552 N.E.2d 500, 502, trans. denied.

Where the provisions of a contract are at issue, this court must give effect to the intentions of the parties as expressed in the contract. If the terms are clear, plain and unambiguous, the terms are conclusive. Union Miniere, S.A. v. Parday Corp. (1988), Ind.App., 521 N.E.2d4 700, 702.

The Distributorship Agreement provides in pertinent part:

5. Terms of Purchase and Sale. Terms of payments stipulated by Seagram on each invoice to Distributor shall represent the terms of payment with respect to Products covered by such invoice and shall be of the essence of this contract. The amount and terms of credit extended by Seagram to Distributor shall be in the sole discretion of Seagram.

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Bluebook (online)
576 N.E.2d 1356, 1991 Ind. App. LEXIS 1404, 1991 WL 166238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-a-beck-co-v-joseph-e-seagram-sons-inc-indctapp-1991.