Inter-City Products Corp. v. Willey

149 F.R.D. 563, 27 Fed. R. Serv. 3d 642, 1993 U.S. Dist. LEXIS 14851, 1993 WL 241154
CourtDistrict Court, M.D. Tennessee
DecidedJune 10, 1993
DocketNo. 3-92-0703
StatusPublished
Cited by3 cases

This text of 149 F.R.D. 563 (Inter-City Products Corp. v. Willey) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inter-City Products Corp. v. Willey, 149 F.R.D. 563, 27 Fed. R. Serv. 3d 642, 1993 U.S. Dist. LEXIS 14851, 1993 WL 241154 (M.D. Tenn. 1993).

Opinion

ORDER

HIGGINS, District Judge.

The Court has before it the defendants’ objections (filed May 27, 1993; Docket Entry No. 67) to the Magistrate Judge’s Report and Recommendation (entered May 14, 1993; Docket Entry No. 62) and defendants’ motion (filed May 27, 1993; Docket Entry No. 65) for de novo determination.

. The Court has independently reviewed the Magistrate Judge’s findings, objections and considered the entire record de novo. The defendants’ objections are without merit and are overruled. The Magistrate Judge’s findings and conclusions are correct and they are adopted and approved.

Accordingly,

1. The motion (filed August 31, 1992; Docket Entry No. 6) and amended motion (filed September 14,1992; Docket Entry No. 16) of the defendant, Wilco Supply Co., Inc., to dismiss is denied.

2. The motion (filed September 8, 1992; Docket Entry No. 10) of the defendants, John A. Willey, Sr., and Estate of Dorothy C. Willey, to dismiss is denied.

3. The defendants’ motion (filed November 13, 1992; Docket Entry No. 33) to strike is denied.

4. The motion (filed December 22, 1992; Docket Entry No. 43) of the defendants to dismiss is denied.

It is so ORDERED.

[565]*565REPORT AND RECOMMENDATION

SANDIDGE, United States Magistrate Judge.

The following motions in this civil action were referred1 to the Magistrate Judge pursuant to 28 U.S.C. § 636(b)(1)(B) for consideration, submission of proposed findings of fact, and recommendation for disposition:

1) the motion of defendants John A. Wil-ley, Sr., and the Estate of Dorothy C. Willey, Sr., to dismiss (filed September 8, 1992; Docket Entry No. 10);
2) the motion of defendant Wilco Supply Co., Inc. to dismiss (filed August 31, 1992; Docket Entry No. 6) and its amended motion to dismiss (filed September 14, 1992; Docket Entry No. 16);
3) the defendants’ motion to strike and objection to evidence sought to be introduced by plaintiff (filed November 13, 1992; Docket Entry No. 33); and
4) the defendants’ second motion to dismiss (filed December 22, 1992; Docket Entry No. 43).

The following motions were also referred2 to the Magistrate Judge pursuant to 28 U.S.C. § 636(b)(1)(A) for consideration and disposition:

1) the plaintiffs first motion to amend its complaint (filed September 10, 1992; Docket Entry No. 14); and
2) the plaintiffs second motion to amend its complaint (filed November 13, 1992; Docket Entry No. 33).

On November 23, 1992, and January 15, 1993, oral arguments were heard on the motions. For the reasons set out below, I recommend that the defendants’ three motions to dismiss be denied. I also recommend that their motion to strike be denied. In a contemporaneously entered Order, I have granted the plaintiffs motions to amend its complaint.

I. Background Summary

The plaintiff, Inter-City Products Corporation (“Inter-City”), is a corporation organized under the laws of the State of Delaware and has its principal place of business in LaVergne, Tennessee. Inter-City is qualified to do business in Tennessee, and manufactures and distributes air conditioning products on a national level.

Defendant Wilco Supply Co., Inc. (“Wilco”) is a corporation organized under the laws of the State of Florida and has its principal place of business in Ft. Lauderdale, Florida. Wilco sells air conditioning parts and equipment primarily in southern Florida. Defendant John Willey, Sr., is a resident of Florida and is the President of Wilco. The Estate of Mr. Willey’s deceased wife, Dorothy Willey, is also a defendant in this action. Mrs. Wil-ley also resided in Florida.

Inter-City filed this diversity action on August 6, 1992, claiming that Wilco has not paid for air conditioning inventory, valued at approximately 1.4 million dollars, which Inter-City supplied to Wilco through a third-party, Douglas-Guardian Warehouse Corporation (“Douglas-Guardian”). Douglas-Guardian is a corporation based in San Francisco, California, and was to hold Inter-City’s inventory in a Florida warehouse for withdrawals made by Wilco. The inventory was supplied pursuant to a series of contractual agreements entered into between Wilco and Inter-City, as well as Wilco and Inter-City’s predecessor in interest, the Heil-Quaker Corporation (“Heil-Quaker”). The date when Inter-City assumed Heil-Quaker’s interests is not exactly clear, but it appears to have been sometime in 1991. Inter-City sued Mr. Willey and Mrs. Willey’s Estate on the grounds that the Willeys had personally guaranteed the obligations of Wilco to Heil-Quaker.

The contracts and documents presented to the Court which are relevant to this action are as follows:

1. a Sales and Security Agreement (“Security Agreement”) between Heil-Quaker and Wilco setting out the terms of the financed sale of inventory from Heil-Quaker [566]*566to Wilco; this Agreement was signed by the Director of Credit and Collections for Heil-Quaker on January 9, 1989, and signed by Mr. Willey as President of Wilco on January 10, 1989;

2. a Heil Heating and Cooling Products 1989 Sales Agreement (“1989 Distributor Agreement”) between Heil-Quaker and Wil-co arranging for Wilco to become a distributor of Heil-Quaker products in the State of Florida for a one-year period; this Distributor Agreement was signed on January 6, 1989, by Mr. Willey as President of Wilco and on January 9, 1989, by the Vice-President of Sales for Heil-Quaker;

3. a Personal Guaranty, dated January 9, 1989, from the Willeys to Heil-Quaker guarantying payment for goods and merchandise sold and delivered to Wilco from Heil-Quaker. The Guaranty states it is provided in consideration of the extension of credit from Heil-Quaker to Wilco;

4. an instruction letter setting out certain procedures for Wilco’s withdrawal of Heil-Quaker inventory from the third-party warehouse of Douglas-Guardian; the letter, dated March 28, 1990, was written by the Credit Manager of Heil-Quaker and was signed on March 29, 1990, by Mr. Willey as President of Wilco and on April 17, 1990, by a representative of Douglas-Guardian;

5. a Warehouse Agreemeni>-Number One between Heil-Quaker and Wilco establishing procedures for the supply of inventory by Heil-Quaker to the Douglas-Guardian warehouse for withdrawal by Wilco; the Warehouse Agreement, dated April 28, 1990, was signed by the Vice-President of Sales for Heil-Quaker and by Mr. Willey as President of Wilco; and

6. a Heil Heating and Cooling Products 1991 Distributor Sales Agreement (“1991 Distributor Agreement”) between Inter-City and Wilco arranging for Wilco to become a distributor of Heil-Quaker products in the State of Florida for a one-year period; this Distributor Agreement was signed on January 31, 1991, by Mr. Willey as President of Wilco and on February 4, 1991, by the Vice-President of Sales for Inter-City.

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149 F.R.D. 563, 27 Fed. R. Serv. 3d 642, 1993 U.S. Dist. LEXIS 14851, 1993 WL 241154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inter-city-products-corp-v-willey-tnmd-1993.