Geiger Bros. v. Conradson

CourtSuperior Court of Maine
DecidedFebruary 10, 2010
DocketANDcv-08-242
StatusUnpublished

This text of Geiger Bros. v. Conradson (Geiger Bros. v. Conradson) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geiger Bros. v. Conradson, (Me. Super. Ct. 2010).

Opinion

STATE OF MAINE SUPERIOR COURT ANDROSCOGGIN, ss Civil Action Docket No. CV-08-t.42.J .. 0 I([)- A;JD- djlO/J-O I GEIGER BROS.,

Plaintiff

v. ORDER ON MOTION SUMMARY JUDGMENT

ANITA CONRADSON,

Defendant

I. BEFORE THE COURT

Before the court is plaintiff's motion for partial summary judgment on count II

of the complairit ("Breach of Promissory Note").

II. FACTUAL AND PROCEDURAL BACKGROUND

Geiger Bros. is a Maine corporation in the business of manufacturing,

wholesaling, and distributing custom advertising products and materials. PL's SMF,

1 (hereinafter II _SMF at _."). Conradson has acted as an independent sales

representative for Geiger Bros. prior to its purported termination of an Independent

Dealer Agreement ("Dealer Agreement").1 [d. at

Arizona ("Blue Cross") is a client of Geiger Bros. whose account has been handled by

Conradson. [d. at fj[fj[ 5, 6. Geiger Bros.'s business dealings with Blue Cross involved a

situation where Blue Cross owned an inventory of promotional products that were

located at a storage facility ("the Storage Facility") in Tempe, Arizona owned by

Conradson's sister. Id. at fj[fj[ 7, 8.

1 The Dealership Agreement is found as an attachment to the Affidavit of Jo-An Lantz in Support of

Plaintiff's Motion for Partial Summary Judgment. At some point, a dispute arose regarding whether Conradson was entitled to

charge Blue Cross certain project management fees in the amount of $33,000. PSMF at err

11; DS;\1F at err 11; Def.'s Add. SMF, errerr 37-39 (hereinafter "_ASMF at _."). Conradson

believed through her past dealings, that she was entitled to charge such fees, whereas

Geiger Bros. takes the position that Conradson overcharged Blue Cross, and was

required to reimburse it for the full amount. DSAMF at errerr 37-39. Following a

discussion on the matter, Conradson signed a promissory note2 ("Note") that is payable

on demand to Geiger Bros. for $15,000. 3 PSMF at err 12. The note provided that plaintiff

would forbear demanding immediate payment on the note provided that, inter alia, the

Dealer Agreement remains in effect and the defendant does not engage in any form of

business related to the manufacture or distribution of promotional products. Id. at err 15.

In September 2008, Blue Cross received an invoice from a company called YESS

for warehousing and fulfillment fees. PSMF at err 19. The invoices reflect that YESS's

address is 4736 E. Calle de Norte, Phoenix, AZ, which Geiger Bros. claims is

Conradson's address. Id. Conradson contends that she has never had any interest in

YESS and that although her sister owned YESS until 2008, she is unsure as to who

owned YESS when the invoices were issued. DSAMF at errerr 60-63. On October 23,2008,

Geiger Bros. informed Conradson that her Dealer Agreement was being cancelled and

that she had violated the terms of the Note. PSAMF at err 68. In either mid October or . .

2 The Note is found as an attachment to the Affidavit of Ja-An Lantz in Support of plaintiff's Motion for Partial Summary Judgment.

3 In her Statement of Material Facts, Conradson alludes to an argument that the execution of the Note was the result of business compulsion and economic duress. However, she did not raise that argument as a ground for invalidating the Note. Maine has not yet recognized the doctrines of business compulsion or economic duress. See Prescott v. Ross, 383 F.Supp.2d 180, 189 (D. Me. 2005).

2 late November, Conradson began doing business as an entity called SWAGZ selling

promotional products. 4

Geiger Bros. has filed a six count complaint against Conradson, claiming "Breach

of the non-compete provisions of the Promissory Note" (count I), "Breach of the

Promissory Note" (count II), "Conversion" (count III), "Negligence" (count IV),

"Breach of Warehouseman's Duty, 11 M.R.S.A. § 7-204" (count V), and "Unjust

Enrichment" (count VI). This motion requests summary judgment on count II only, the

promissory note.

III. DISCUSSION

A. Standard of Review

Summary Judgment IS appropriate when the court's review of the parties'

statements of material fact and cited record evidence indicates there exists no genuine

issues of material fact such that the moving party is entitled to judgment as a matter of

law. Dyer v. Dep't. of Transportation, 2008 ME 106, <[ 14, 951 A.2d 821, 825. A fact is

"material" if it could potentially affect the outcome of the dispute under governing law.

Id. An issue offact is "genuine" if there is sufficient evidence to require the fact finder

to choose between two competing versions of the fact at trial. Inkel v. Livingston, 2005

ME 42,

inferences to be drawn from that evidence in the light most favorable to the nonmoving

party. [d. However, the nonmoving party may not rely on conclusory allegations,

improbable inferences, and unsupported speculation to defeat summary judgment.

Dyer, 2008 ME 106 at <[ 13, 951 A.2d at 825.

4 According to Conradson, she began doing business as SWAGZ in late November 2008. DSAMF at

3 B. Termination of the Dealership Agreement

The Law Court has explained, I/[a] promissory note is a contract." QAD Investors

v. Kelly, 2001 ME 116, en 13, 776 A.2d 1244, 1248. Accordingly, ordinary rules of

construction apply. Id. When a contract is unambiguous, the interpretation of the

contract is a question of law. Id. (citing Acadia Ins. Co. v. Buck Constr. Co., 2000 ME 154,

en 8, 756 A.2d 515, 517). Here, the Note expressly provides that a condition of Geiger Bros.'s promise not

to demand payment is that I/[t]he Independent Dealer Agreement between [Conradson]

and Geiger Bros. shall remain in full force and effect." Geiger Bros.'s has taken the

position that when it terminated the Dealer Agreement, it was entitled to demand full

payment on the note because the condition permitting it to demand payment was

triggered. PI.'s Mot. at 5-6. Conradson has replied that the termination was illegal

because she had not violated any condition of the Note. Def Mot. at 5.

Here, Conradson appears to be confusing Geiger Bros. ability to terminate the

Dealership Agreement with its ability to demand payment under the Note. The

Dealership Agreement outlines the terms and conditions of the relationship between

Geiger Bros. and Conradson as wholesaler and distributor. Section 1 of the Dealership

Agreement states I/[n]othing in this agreement shall implicitly or expressly allow either

party to assume or create any contract obligation or responsibility for in the name of the

other party in any way whatever." This language implies that the agreement can be

freely terminated at any time, and that Geiger Bros. is not obligated to continue

retaining Conradson as a dealer, nor is Conradson obligated to continue selling Geiger

4 Bros. products. s Consequently, whether or not Conradson violated any of the terms of

the Note is immaterial as to whether Geiger Bros. had the power to terminate the

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dyer v. Department of Transportation
2008 ME 106 (Supreme Judicial Court of Maine, 2008)
Chapman & Drake v. Harrington
545 A.2d 645 (Supreme Judicial Court of Maine, 1988)
Acadia Insurance Co. v. Buck Construction Co.
2000 ME 154 (Supreme Judicial Court of Maine, 2000)
QAD Investors, Inc. v. Kelly
2001 ME 116 (Supreme Judicial Court of Maine, 2001)
Inkel v. Livingston
2005 ME 42 (Supreme Judicial Court of Maine, 2005)
Everett J. Prescott, Inc. v. Ross
383 F. Supp. 2d 180 (D. Maine, 2005)
Combined Insurance Co. of America v. Hansen
756 F. Supp. 458 (D. Oregon, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
Geiger Bros. v. Conradson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geiger-bros-v-conradson-mesuperct-2010.