Golden Plains Feedlot, Inc. v. Great Western Sugar Co.

588 F. Supp. 985, 39 U.C.C. Rep. Serv. (West) 785, 1984 U.S. Dist. LEXIS 16125
CourtDistrict Court, D. South Dakota
DecidedJune 6, 1984
DocketCiv. 82-5024
StatusPublished
Cited by10 cases

This text of 588 F. Supp. 985 (Golden Plains Feedlot, Inc. v. Great Western Sugar Co.) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Golden Plains Feedlot, Inc. v. Great Western Sugar Co., 588 F. Supp. 985, 39 U.C.C. Rep. Serv. (West) 785, 1984 U.S. Dist. LEXIS 16125 (D.S.D. 1984).

Opinion

MEMORANDUM OPINION

BOGUE, Chief Judge.

This case involves an alleged breach of contract for the sale of sugar beet pulp, a by-product of sugar beets used for livestock feed. Plaintiff, Golden Plains Feedlot, Inc. (Golden Plains-Buyer), alleges that on January 5, 1982, it entered into a contract with defendant, The Great Western Sugar Company (Great Western-Seller), for the purchase of 20,000.00 ton of beet pulp feed during the period January 5 to August, 1982. Golden Plains-Buyer contends that the sale was at an agreed price of $50.00 per ton, F.O.B. Great Western-Seller's Nebraska plant or plants. Finally, Golden Plains-Buyer alleges that after partial performance of the contract, Great Western-Seller refused to deliver further beet pulp feed and, therefore, breached the contract.

Great Western-Seller denies these allegations and asserts the statute of frauds as an affirmative defense. Additionally, Great Western-Seller counterclaims for goods sold and delivered from January 5 to January 15, 1982.

Great Western-Seller moves for summary judgment on all issues. Specifically, Great Western-Seller asserts there is no genuine issue of material fact concerning:

1. The existence of an oral contract for the sale of beet pulp feed; or, alternatively,
2. The failure of the oral contract to satisfy the statute of frauds, assuming the existence of an oral contract.

Moreover, with regard to its counterclaim, Great Western-Seller contends it is entitled to summary judgment because:

1. Partial performance takes any express oral contract out of the statute of frauds; or, alternatively,
2. The parties entered into an implied sales agreement for beet pulp feed sold and delivered on an open account, assuming no express oral contract was formed.

In resolving summary judgment motions, this Court is required to view the facts in *987 the light most favorable to the opposing party. Adickes v. S.H. Kress & Co., 398 U.S. 144, 153-59, 90 S.Ct. 1598, 1606-09, 26 L.Ed.2d 142 (1970). Also, this Court must give the opposing party the benefit of reasonable inferences to be drawn from underlying facts. Id. The Eighth Circuit Court of Appeals views summary judgment as an extreme remedy. Windsor v. Bethesda General Hospital, 523 F.2d 891, 893 n. 5 (8th Cir.1975). It is not to be granted unless the moving party establishes its right to judgment so as to leave no room for controversy. Robert Johnson Grain Co. v. Chem. Interchange Co., 541 F.2d 207, 209 (8th Cir.1976). Moreover, the opposing party must not be able to prevail under any discernible circumstances. Id. at 209-10. With these principles in mind, this Court reviews the instant facts in the light most favorable to Golden Plains-Buyer.

FACTS

Melvin Delzer is the principal of Golden Plains-Buyer, a cattle feedlot operation located in South Dakota. Goldman Depo., pp. 39, 41. Larry Moore is the feedlot manager. Moore Depo., p. 45. Golden Plains-Buyer feeds beet pulp pellets to its cattle. Id. at 63.

Melvin Delzer and Ted Venners are business associates in various enterprises, including coal, oil, and gas. Goldman Depo., p. 39-40. Venners has no relationship to Golden Plains-Buyer. Id. at 39.

Joyce Goldman has been employed by Venners as his personal secretary since April, 1981. Id. at 38-39. Prior to that time, Goldman was employed by Great Western-Seller from approximately 1970 to April, 1981. Id.

Nancy Stearns is employed as the senior customer service representative in Great Western-Seller’s special products division, which is located in Colorado. Stearns Depo., p. 6. Paul Woods is Great Western-Seller’s sales manager for the special products division. Woods Depo., p. 6.

In the morning of Tuesday, January 5, 1982, Goldman called Great Western-Seller to obtain a price quote for beet pulp pellets. Goldman Depo., pp. 42-43. Goldman had never before worked on behalf of Golden Plains-Buyer, but did so in this instance on the recommendation of Venners to Delzer. Id. at 41-42.

Goldman spoke with Nancy Stearns of Great Western-Seller. Goldman testified that Stearns quoted a beet pulp price of $50.00 per ton. Id. at 51. Goldman told Stearns that Golden Plains-Buyer “would like to contract for as much as 30,000 tons or whatever we could accept delivery on within their time frame.” Id. at 52. Further, Goldman indicated the time frame discussed was from January 5 to the end of August, 1982. Id. at 63. Per Goldman’s request, Stearns said she would give this information to Paul Woods, Great Western-Seller’s sales manager. Id.

Woods called Goldman that same afternoon. Id. at 56. Goldman told Woods that Golden Plains-Buyer was “looking for up to 30,000 tons or whatever they had available.” Id. Goldman further told Woods that if Golden Plains-Buyer could get this better price, it “wanted to immediately negotiate a contract.” Id. at 57. Goldman indicated no problem in picking up beet pulp pellets from any of Great Western-Seller’s Nebraska factories (Scottsbluff, Gering, Bayard, Mitchell). Id. Goldman asked Woods what Golden Plains-Buyer “needed to do to get everything moving.” Id. Woods stated the need for credit approval. Id. Goldman gave Woods the names of Golden Plains-Buyer’s feedlot manager, Larry Moore, and a South Dakota banker, Ray Klay. Id. Finally, Woods had to check inventories “to see exactly what was available, but that he didn’t feel there was any problem with 30,000 tons.” Id. at 58.

The next contact between the parties occurred on Thursday, January 7, 1982. Goldman called Great Western-Seller “to ask the status of the inventory check.” Id. at 60. Goldman first spoke with Stearns who stated Great Western-Seller still did not have the inventory numbers. Id. at *988 61-62. Woods then came on the line and told Goldman that he expected to have the numbers by the end of the day. Id. at 62. Upon Goldman’s inquiry, Woods stated he would ask about the status of the inventory check. Id. Woods said he would call Goldman as soon as he had the inventory numbers. Id.

On Friday, January 8, 1982, Goldman called Stearns and asked for Woods who was out for the day. Id. at 63. Goldman stressed that Golden Plains-Buyer “would like to get a contract so that we could have Mr. Delzer sign it. He is going to be traveling soon.” Id. Stearns indicated she would try to reach Woods.

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588 F. Supp. 985, 39 U.C.C. Rep. Serv. (West) 785, 1984 U.S. Dist. LEXIS 16125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golden-plains-feedlot-inc-v-great-western-sugar-co-sdd-1984.