House of Brides, Inc. v. Alfred Angelo, Inc.

163 F. Supp. 3d 534, 88 U.C.C. Rep. Serv. 2d (West) 1208, 2016 U.S. Dist. LEXIS 20568, 2016 WL 698093
CourtDistrict Court, N.D. Illinois
DecidedFebruary 19, 2016
DocketNo. 11 C 07834
StatusPublished
Cited by5 cases

This text of 163 F. Supp. 3d 534 (House of Brides, Inc. v. Alfred Angelo, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
House of Brides, Inc. v. Alfred Angelo, Inc., 163 F. Supp. 3d 534, 88 U.C.C. Rep. Serv. 2d (West) 1208, 2016 U.S. Dist. LEXIS 20568, 2016 WL 698093 (N.D. Ill. 2016).

Opinion

MEMORANDUM OPINION AND ORDER

John J. Tharp, Jr., United States District Judge

“They say that breaking up is hard to do.”1 In this business divorce, the “Brides” (plaintiffs House of Brides, Inc., World’s Largest Online Wedding Store, Inc., HOB Holding Corporation, and HOB I Holding Corporation) and their erstwhile spouse, defendant Alfred Angelo, Inc. (“Angelo”), a manufacturer of wedding apparel and accessories, blame each other for the breakdown of their longstanding commercial marriage. Accusing Brides of cheating (selling Angelo’s products online and at discounted prices and failing to pay for [537]*537merchandise), Angelo ultimately stopped filling orders for Brides, which countered by filing suit. This opinion addresses what remains of the parties’ respective claims about broken promises.2 Brides sues for breach of contract (Count I), breach of warranty (Count II), and declaratory judgment (Count III). Angelo’s counterclaim asserts, as relevant here, breach of contract under the UCC and the common law. Angelo now moves for summary judgment on all of Brides’ remaining claims against it as well as for judgment on its own claims relating to the nonpayment.3 For the reasons that follow, the motion is granted in part and denied in part.

1. Facts

Angelo manufactures and distributes wedding apparel and accessories; in recent years it also began operating its own retail stores. Brides sells wedding products, primarily bridal gowns and bridesmaid dresses, both at retail stores and over the Internet. For more than forty years, Brides was an authorized dealer of Angelo products. Eva Buziecki is the president of Brides; her husband Dale is an independent consultant and former company principal, and their son Jason is the supervisor of Internet sales.

Throughout the parties’ commercial relationship, Brides would receive orders for Angelo products in its retail stores or on its website. Pursuant to Angelo’s Confidential Price List, Brides transmitted purchase orders to Angelo, which contained the quantity, style number, description, and size of the selected dresses, and listed the wedding date associated with the order. Angelo in turn sent an “Order Ac-knowledgement” listing a “requested shipping date.”4 Angelo would then send an invoice for the products when it shipped them. Orders took up to three or four months to ship.

Between March 2011 and September 2011, Angelo shipped $294,772.70 worth of orders to Brides for which Brides did not remit any payment. Brides received the products and the invoices, which reflected payment terms of “Net 30” or “8/30 EOM.” Effective August 12, 2011, Angelo terminated its relationship with Brides and declined to fill any more orders. With respect to orders already placed but not delivered, Brides states that “hundreds of purchase orders” that Angelo had con[538]*538firmed were not shipped. PL Stmt, of Add’l Facts ¶ 21, ECF No. 82 at 14. Angelo says that it “continued to ship goods to Brides based on its representation to pay for goods, which Brides failed to do.” Def. Resp. to Add’l Facts ¶ 21, ECF No. 90 at 12.

According to Brides, “from the commencement” of the 40-year commercial relationship Angelo had “provided verbal payment terms” to account for the “seasonal cash flow” of House Brides. According to Brides, this arrangement permitted smaller payments in “lower cash flow months, such as in October, November, and December” and larger payments during the first fiscal quarter. Angelo denies that it ever agreed to modify terms of payment.

Beginning in 2010, Brides noticed a change in the delivery of its orders from Angelo, with “many orders” not being delivered by the date requested. Brides’ customers depended on receiving their orders in advance of the wedding date, with sufficient time for alterations. If the dresses did not arrive in time, the customers would demand refunds from Brides. On “numerous occasions,” Angelo delivered dresses too late. According to Brides, “approximately 90%” of the orders reflected in the invoices that are the subject of Angelo’s claim were not delivered by what Brides refers to as “the agreed confirmation date.”

Also on “numerous occasions,” Angelo shipped the wrong dress, a duplicate dress, or a defective dress when filling a purchase order. Brides did not inspect orders upon delivery. It kept each order packaged up until the retail customer opened it to try on in the store or when delivered to her at home. Until the customer inspected the order, Brides did not know about any defect or problem. Brides would provide a refund to the customer on demand. Brides therefore was “forced to pay for” dresses that were defective, incomplete, or otherwise wrong. Brides retained all of the orders from Angelo that customers returned.

Jason Buziecki and other unnamed representatives of Brides contacted unnamed representatives of Angelo to notify them of customers’ cancellations due to missed dates or other defects. Angelo would not accept returns of the refunded orders. Brides “regularly” contacted Angelo’s sales representative by telephone to inform Angelo about “the widespread non-conformities and late deliveries” and request refunds. Dale Buziecki at some point told the CFO of Angelo, Joe Weltz, that Brides “was requesting a credit and reimbursement for incidental expenses on account of the orders that had been canceled.” According to Brides, it incurred losses of $254,556 in refunds to its customers, although it is not clear over what time period these losses occurred.

Brides sued Angelo in the Circuit Court of Cook County, Illinois, on October 7, 2011, asserting claims of breach of contract and breach of warranty and further seeking a declaratory judgment of its rights. Angelo removed the action to this Court, where it filed its counterclaim for, among other things, breach of contract. The plaintiffs amended their complaint to add various claims for antitrust violations and business torts, all of which have since been dismissed through motion practice. Angelo now moves for summary judgment on its nonpayment claims as well as on the remaining counts of the plaintiffs’ Second Amended Complaint. The plaintiffs contest the motion but do not move for judgment on their own claims.

II. Discussion

Angelo is entitled to summary judgment if it shows that theré is no genuine dispute as to any material fact, and it is entitled to judgment as a matter of law. See Fed. R. [539]*539Civ. P. 56(a); Apex Digital, Inc. v. Sears, Roebuck & Co., 735 F.3d 962, 965 (7th Cir.2013). A fact is “material” if it is one identified by the law as affecting the outcome of the case. Hess v. Bresney, 784 F.3d 1154, 1158 (7th Cir.2015) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). An issue of material fact is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)). In assessing the motion, this Court must construe all facts and draw reasonable inferences in the light most favorable to Brides, the nonmoving party.

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163 F. Supp. 3d 534, 88 U.C.C. Rep. Serv. 2d (West) 1208, 2016 U.S. Dist. LEXIS 20568, 2016 WL 698093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/house-of-brides-inc-v-alfred-angelo-inc-ilnd-2016.