Impossible Electronics Techniques, Inc. v. Wackenhut Protective Systems, Inc.

669 F.2d 1026, 33 U.C.C. Rep. Serv. (West) 806, 1982 U.S. App. LEXIS 21093
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 11, 1982
Docket80-5890
StatusPublished
Cited by257 cases

This text of 669 F.2d 1026 (Impossible Electronics Techniques, Inc. v. Wackenhut Protective Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Impossible Electronics Techniques, Inc. v. Wackenhut Protective Systems, Inc., 669 F.2d 1026, 33 U.C.C. Rep. Serv. (West) 806, 1982 U.S. App. LEXIS 21093 (5th Cir. 1982).

Opinion

R. LANIER ANDERSON, III, Circuit Judge:

In this diversity action, the appellant, Impossible Electronic Techniques, Inc., sued the appellee, Wackenhut Protective Systems, Inc., for breach of an oral contract to buy certain electronic closed-circuit cameras. Wackenhut denied that such a contract had been made and interposed the Statute of Frauds as a defense. The district court granted Wackenhut’s motion for summary judgment and dismissed the case. We reverse. 1

I. FACTS

Sometime in late 1973, George Wacken-hut, chairman of the board and president of the Wackenhut Corporation, the parent *1029 company of the appellee, decided that his personal home, known as the “Castle,” in Coral Gables, Florida, needed a little extra security. Thereafter, the appellee began looking to purchase a closed-circuit television camera security system, and contacted the six or eight companies in the United States that manufacture such equipment. Two of these companies, one of which was the appellant, were invited in January, 1974, to conduct a demonstration of their equipment at the “Castle.” Mr. Wackenhut personally decided that the appellant’s camera produced the best picture.

At this point, the appellant’s and the appellee’s versions of the facts diverge. The appellant contends that after its demonstration the price for its cameras was discussed, Mr. Wackenhut decided to use appellant’s cameras, and an oral contract for the sale was made. The appellee, conversely, claims that while Mr. Wackenhut concluded that he wanted the appellant’s cameras, no further negotiations were conducted and no agreement was reached.

The parties agree, however, that the ap-pellee stated that it would need a local company to install and to maintain the system. In response, the appellant recommended Jackson & Church Electronics, Inc., a local dealer of the appellant’s equipment. Appellee had never heard of Jackson & Church before this time. Although the ap-pellee’s brief implies that the appellee next contacted Jackson & Church (Brief of Ap-pellee at 4), the record appears to indicate that the appellant first contacted Jackson & Church to inquire whether that company would be willing to handle the installation and maintenance. Record on Appeal, vol. II, at 130.

The appellant apparently initiated the documentary aspects of the transaction by preparing in late March a shipping instructions form for the first camera and accessories to be sent to Jackson '& Church. The president of Jackson & Church next mailed a letter to the appellant explaining how payment for the equipment would be made, thanking the appellant for the referral, and describing the appellee as “yours [i.e., the appellant’s] and our [i.e., Jackson & Church’s] customer.” Jackson & Church forwarded a purchase order to the appellant listing three cameras, two auto-zoom lenses, one auto-iris, three lens control units, and one rack mount assembly, all totaling $32,-119. 2 The appellee sent Jackson & Church a purchase order listing the same items and quantities as in the Jackson & Church purchase order (although for prices totaling $43,420) and assorted additional electronic paraphernalia, amounting to a total price of $47,678. The appellant contends that the price differences between the purchase orders merely represents the additional charges imposed by Jackson & Church for the installation and maintenance services. The appellee claims that Jackson & Church bought the equipment from the appellant at a dealer discount for resale to the appellee at retail prices.

After these documents were issued, the appellant commenced assembling the cameras. Due to some delays in obtaining parts and the special nature of the cameras, the first camera was not completed until early June, 1974, at which time the appellant’s president, Jesse Wagner, personally delivered it to the Wackenhut residence. An employee of Jackson & Church installed the camera in the presence of Wagner and representatives of the appellee. George Wack-enhut would occasionally visit the installation locations and at one point discussed with Wagner the service life and warranties of the camera. In response to a question, Wagner informed Wackenhut that the pic *1030 ture tube, an essential component of each camera, had an operational life expectancy of about six months and a replacement cost of approximately $5,000. Not surprisingly, George Wackenhut was unhappy upon discovering that the camera system his company had bought for him had a yearly maintenance cost of possibly $30,000, more than half the purchase price of the system. One week later, before the remaining two cameras were shipped, the appellee sent a letter to Jackson & Church cancelling its purchase order. Jackson & Church in response notified the appellant that Jackson & Church was cancelling its purchase order. Appellee thereafter arranged to purchase through Jackson & Church a less expensive camera system manufactured by one of appellant’s competitors. Distressed by this turn of events, the appellant filed this suit. 3

II. SUMMARY JUDGMENT LEGAL ANALYSIS

The appellee urges, and the opinion of the district court suggests, two distinct grounds supporting the grant of summary judgment. First, the appellee argues that it never entered into any contract with the appellant. While conceding that perhaps some preliminary negotiations with the appellant took place, the appellee takes the position that the facts reveal two separate agreements: one between appellee and Jackson & Church and the other between Jackson & Church and the appellant. Thus, under appellee’s theory, appellee by mutual agreement with Jackson & Church rescinded its contract, and appellant has no contractual rights which can be enforced against the appellee (/.a, appellant’s only recourse is against Jackson & Church). Second, the appellee argues that even if summary judgment cannot be based on the absence of an agreement between the parties, the appellee must nonetheless prevail because any oral contract with the appellant would be unenforceable by virtue of the Florida Uniform Commercial Code Statute of Frauds. Fla.Stat.Ann. § 672.2-201 (West 1966). The subject matter of the alleged contract (i.e., a sale of goods for a price more than $500) undoubtedly comes within the prescriptions of the Statute of Frauds. The appellee contends that it is entitled to summary judgment because there is no writing that will satisfy the Statute and none of the statutory exceptions are applicable. 4

Summary judgment should be entered only if “there is no genuine issue as to any material fact and . . . the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). See Casey Enterprises v. American Hardware Mutual Insurance Co., 655 F.2d 598

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Bluebook (online)
669 F.2d 1026, 33 U.C.C. Rep. Serv. (West) 806, 1982 U.S. App. LEXIS 21093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/impossible-electronics-techniques-inc-v-wackenhut-protective-systems-ca5-1982.