H&H Wholesale Servs., Inc. v. Kamstra Int'l

373 F. Supp. 3d 826
CourtDistrict Court, E.D. Michigan
DecidedJanuary 2, 2019
DocketCase No. 2:17-cv-13422-LJM-APP
StatusPublished
Cited by5 cases

This text of 373 F. Supp. 3d 826 (H&H Wholesale Servs., Inc. v. Kamstra Int'l) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H&H Wholesale Servs., Inc. v. Kamstra Int'l, 373 F. Supp. 3d 826 (E.D. Mich. 2019).

Opinion

LAURIE J. MICHELSON, UNITED STATES DISTRICT JUDGE

In late 2016 and through April 2017, Kamstra International, B.V. sold H & H Wholesale Services, Inc. around 24,000 boxes of blood-glucose test strips made by Abbott. As it turned out, not all of them were completely genuine. The test strips were authentic, but the box and some of the internal packaging were not. Abbott caught the problem and sued H & H in federal court in New York. That suit is ongoing, but H & H says it is racking up attorney fees and that its exposure is in the millions of dollars.

H & H believes that Kamstra's sales of the mis-packaged strips were covered by H & H's vendor agreement. And, under *830that agreement, Kamstra warrantied that any goods it sold to H & H would be genuine and that if there were problems with the goods, Kamstra would indemnify H & H. So H & H filed this lawsuit seeking to, among other things, enforce the indemnity provision of the vendor agreement and have Kamstra cover its attorney's fees and any forthcoming damages in the Abbott action.

Kamstra moves to dismiss this case. Although the vendor agreement has a forum-selection clause stating that related litigation would take place in Michigan, Kamstra says that clause-indeed, the entire vendor agreement-is a nullity. In fact, says Kamstra, its own terms and conditions governed the sale of the strips, and its terms and conditions provide for a forum in its backyard, the Netherlands. So Kamstra asks this Court to dismiss for lack personal jurisdiction. Failing that, Kamstra says that H & H's claims should be dismissed as implausible.

For the reasons the follow, the Court finds that H & H has made a prima facie showing that the vendor agreement, and its forum-selection clause, are enforceable. But the Court does agree that some of H & H's claims should be dismissed as implausible.

I.

A.

Both H & H Wholesale Services, Inc. and Kamstra International, B.V. are in the chain of distribution for health and other products. For the transactions underlying this case, Kamstra sourced blood-glucose test strips from another company, sold them to H & H, and H & H resold them to pharmacies and the like. H & H is a Michigan company; Kamstra a Dutch company.

In 2012, sales people from the two companies met at a medical-equipment expo in Florida. (ECF No. 22, PageID.378.) In particular, David Gulas from H & H and Harmen Haaijer from Kamstra discussed forming a business relationship. (ECF No. 22, PageID.378.) But nothing came to fruition at that time.

Over a year-and-half later, in February 2014, Haaijer and Gulas were discussing the possibility of Kamstra selling H & H some test strips made by Abbott Laboratories (or one of its related companies). (ECF No. 15, PageID.178-179.) Gulas asked Haaijer to sign H & H's Vendor Application and Agreement. (Id. ) Haaijer complied, certifying that he was "authorized to execute th[e] Agreement of behalf of [Kamstra]." (ECF No. 40, PageID.829.)

Under the Vendor Agreement, Kamstra "agree[d]" to warranties, indemnification, a Michigan forum, and other terms "in consideration of being considered a Vendor for H & H, sales to H & H and other good and valuable consideration." (ECF No. 40, PageID.827.) Regarding warranties, Kamstra agreed that any product it sold or offered to H & H would be "genuine and authentic," "comply with all federal, state, and local laws," and would be "in original manufacturer's packaging that [would] not have (or at any time have had) any alterations of any kind." (ECF No. 40, PageID.828.) Kamstra further agreed that it would "indemnify and hold H & H harmless from and against any and all claims ... expenses and losses of any nature whatsoever relating to or arising out of [Kamstra's] breach, violation or failure to comply with the provisions of" the Vendor Agreement. (ECF No. 40, PageID.828.) Kamstra also agreed that "any dispute or enforcement action relating to [the Vendor] Agreement or the transactions contemplated" under the Vendor Agreement would take place in a Michigan court or *831this Court, the U.S. District Court for the Eastern District of Michigan. (ECF No. 40, PageID.829.)

In addition to the warranty, indemnification, and forum-selection provisions just recited, the Vendor Agreement also specified that its terms would "supersede any terms contained in [Kamstra] emails, invoices, shipping documents or other documents related to the Products." (ECF No. 40, PageID.827.) And it stated, "These terms and conditions shall control with respect to any purchase order or sale of Products. No waiver, alteration or modification of these terms and conditions whether on Buyer's purchase order or otherwise shall be valid unless accepted in writing and signed by an authorized representative of H & H." (ECF No. 40, PageID.829.)

When Haaijer emailed Gulas a signed copy of the Vendor Agreement, Haaijer asked Gulas to complete Kamstra's new-customer form. (ECF No. 15, PageID.177.) Fine print at the bottom of that form read, "To all agreements whereby we act as seller our general terms and conditions of sale, delivery and payment apply, and to all agreements whereby we act as buyer our general terms and conditions of purchase apply, which you have received from us, and which are also deposited at the commercial register and published at www.hollandtradinggroup.com. We expressly reject the applicability of your terms and conditions." (ECF No. 15, PageID.180.) Throughout this opinion the Court will refer to this quoted language (and materially-identical variants) as "Kamstra's Terms." Gulas (or his assistant) completed the form and emailed it back to Haaijer. But it appears that the form did not ask for, and Gulas did not provide, his signature. (See ECF No. 15, PageID.181.)

Although Kamstra signed H & H's Vendor Agreement in February 2014, the two companies did not complete any transactions for a while. Indeed, over the next two years, H & H placed orders for products but Kamstra was unable to fill the orders. (ECF No. 22, PageID.380; see also ECF No. 15, PageID.207-208.)

B.

By 2016, Jeroen Erents (rather than Haaijer) had become H & H's contact person at Kamstra. (See ECF No. 15, PageID.196, 207.)

In July 2016, Erents sent Gulas an email, asking if H & H was interested in ordering some blood-glucose test strips made by Aviva. (ECF No. 15, PageID.196.) After a bit of back and forth, Gulas indicated that H & H was interested. (ECF No. 15, PageID.206.) With the order in process, Erents wrote Gulas: "In order to set you up in [Kamstra's] system I would need the attached document completed. Can you please do so for me?" (ECF No. 15, PageID.206.) The attached document was Kamstra's new-customer form. At the bottom of the new-customer form, in fine print, were Kamstra's Terms. (ECF No. 15, PageID.210.) Gulas partly completed the form but did not comply with the form's request for a signature. (ECF No. 15, PageID.212.) In connection with the Aviva order, Kamstra also sent H & H a sales order confirmation. (ECF No. 15, PageID.214.) The sales order confirmation also contained Kamstra's Terms. (Id. ) Unlike the new-customer form, Gulas signed the sales order confirmation.

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373 F. Supp. 3d 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hh-wholesale-servs-inc-v-kamstra-intl-mied-2019.