havePower, LLC v. General Electric Co.

256 F. Supp. 2d 402, 2003 U.S. Dist. LEXIS 6108, 2003 WL 1868969
CourtDistrict Court, D. Maryland
DecidedMarch 31, 2003
DocketCIV.A. DKC 2001-0353
StatusPublished
Cited by18 cases

This text of 256 F. Supp. 2d 402 (havePower, LLC v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
havePower, LLC v. General Electric Co., 256 F. Supp. 2d 402, 2003 U.S. Dist. LEXIS 6108, 2003 WL 1868969 (D. Md. 2003).

Opinion

MEMORANDUM OPINION

CHASANOW, District Judge.

Presently pending and ready for resolution in this breach of contract case are: (1) the motion of Plaintiff havePower, LLC for summary judgment; (2) the motion of Defendant General Electric Fuel Cell Systems, LLC (GEFCS) for summary judgment; and (3) Plaintiffs motion to file a sur-reply. The issues have been fully briefed and no hearing is deemed necessary. Local Rule 105.6. For the following reasons, the court will grant Plaintiffs Motion for Leave to File Surreply and grant Defendant’s motion for summary judgment on the breach of contract and promissory estoppel claims. The court will deny Plaintiffs motion for summary judgment on the breach of contract and promissory estoppel claims. Both parties’ motions for summary judgment on the claim for specific performance will be denied as moot.

I. Background

The following facts are set forth as un-controverted. 1 This case arises out of a dispute over an exclusive distributorship agreement between havePower and GE Fuel Cell Systems, LLC, (GEFCS) to sell fuel cells in the Washington, DC, Maryland and Northern Virginia region. Fuel cell electric generators produce direct electric current that can be converted to alternating current for use by homes and industries. havePower was established as a division of Chesapeake Design, LLC, a Maryland company, in 1998. It became a District of Columbia limited liability company in December 1999 and was reformed as a Maryland limited liability company in August 2000. In February 1999, GE Power Systems formed GE Fuel Cell Systems to market and distribute fuel cells designed and manufactured by Plug Power, Inc. GE Fuel Cell Systems is co-owned by GE and Plug Power, Inc.

In late 1999, havePower contacted GEFCS to explore the possibility of becoming a regional distributor of Plug Power fuel cells. After an initial period of correspondence, on or about February 15, 2000, havePower representatives traveled to GEFCS’s offices in Latham, New York where they toured the facility and presented havePower’s Strategic Plan to GEFCS in a meeting. The Plan detailed: (1) have-Power’s company profile; (2) havePower’s business experience and revenue performance; (3) the fuel cell products and services to be offered by havePower; (4) the current state of fuel cell technology; (5) havePower’s management team; (6) have-Power’s strategic alliance with Power-Trust; (7) havePower’s capital structure; (8) havePower’s secured gas and propane supply; and (9) havePower’s market presence.

Over the course of the next few months, havePower and GEFCS engaged in extensive negotiations over the terms of a limited exclusive distributorship of certain Plug Power fuel cells. Jay Zawatsky (Zawat-sky), Chief Executive Officer of havePower, and Richard Robertson (Robertson), Director of North American Market Development for GE MicroGen, Inc., were the *404 primary negotiators on behalf of havePower and GEFCS respectively.

From March through July 2000, Robertson and Zawatsky exchanged communications and preliminary documents in an attempt to work toward a definitive Distributor Agreement between havePower and GEFCS. At all times material to the formation of the Distributor Agreement contract, GEFCS’s President, Barry Glickman (Glickman), delegated to Robertson: (1) authority to negotiate the terms of a definitive Distributor Agreement, within certain parameters; (2) actual authority to communicate to havePower GEFCS’s decision concerning contract terms and approval, subject to approval first by Glickman and then by the GEFCS distributor review and approval process; and (3) actual authority to negotiate the terms of a definitive Distributor Agreement on behalf of GEFCS within the terms of its standard contract, although anything outside of those standard terms also needed to be approved by Glickman and any distribution agreement, before it could take effect, was subject to GEFCS’s approval process.

Beginning in May 2000, havePower and GEFCS engaged in talks contemplating the sale of fuel cells by havePower, as a GEFCS distributor, to American Indian tribes in addition to the Maryland, Washington, DC, and Northern Virginia markets. By letter dated May 4, 2000, Zawatsky communicated to GEFCS that havePower was ready to execute the definitive Distributor Agreement and asked for wiring instructions to enable havePower to transmit $750,000 to GEFCS as the fee for the exclusive distributorship that would be created by the definitive Distributor Agreement.

Over the course of July 2000, havePower and GEFCS continued negotiations over specific terms of a definitive Distributor Agreement. By letter dated July 24, 2000, Robertson sent Zawatsky two copies of the definitive Distributor Agreement for execution by havePower explaining that Robertson would submit the copies for Gliek-man’s signature later that week. By letter dated July 25, 2000, havePower returned the copies of the Distributor Agreement, executed by havePower, to Robertson along with a check in the amount of $750,000.

In a telephone conversation on August 17, 2000, Robertson notified Zawatsky that GEFCS’s marketing department was assembling a print advertisement and had requested that the trademarks for all fuel cell distributors be included in the ad copy, which was due to the printers soon. Robertson asked Zawatsky to transmit to him an electronic version of havePower’s logo for inclusion in the print advertisement that was set to run in the Fall 2000 issues of several trade publications. While the parties dispute other portions of the conversation between Zawatsky and Robertson, it is undisputed that the next day, Zawatsky sent two files containing have-Power’s final logo design via e-mail to Robertson. havePower then retained intellectual property lawyers to initiate a trademark/servicemark application process, paid for a comprehensive trademark search, and intensified its marketing efforts. Beginning at the end of August 2000 and continuing through September 2000, Za-watsky and Robertson’s communications addressed proposed installation projects, GEFCS’s advertisement and marketing efforts (a topic GEFCS also addressed with other distributors), and discussions with the leader of the Washoe Tribe of Nevada and California and other Native American tribal leaders.

On October 23, 2000, Robertson telephoned Zawatsky. The conversation called into question the viability of the *405 terms of the parties’ current distributorship agreement. On October 25, 2000, Za-watsky, George Milne, and Bill Ingersoll, representing havePower, participated in a telephone conference with Robertson and Glickman which havePower recorded without the knowledge of the GEFCS participants. In that teleconference, neither Glickman nor Robertson confirmed or denied a contractual relationship with have-Power. Robertson did explain that the just-announced merger between GE and Honeywell had an effect on GEFCS’s unwillingness to enter into exclusive distributorships. Glickman invited the havePower executives to visit GEFCS in Latham, New York to continue their discussions in person.

On November 6, 2000, Zawatsky, Milne, and Ingersoll traveled to GEFCS’s offices to meet with Robertson and Glickman. Because Glickman was unable to participate in the meeting, the havePower executives met only with Robertson.

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Bluebook (online)
256 F. Supp. 2d 402, 2003 U.S. Dist. LEXIS 6108, 2003 WL 1868969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havepower-llc-v-general-electric-co-mdd-2003.