J.D. Fields & Co. v. United States Steel International, Inc.

426 F. App'x 271
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 19, 2011
Docket10-20217
StatusUnpublished
Cited by14 cases

This text of 426 F. App'x 271 (J.D. Fields & Co. v. United States Steel International, 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
J.D. Fields & Co. v. United States Steel International, Inc., 426 F. App'x 271 (5th Cir. 2011).

Opinion

SHARION AYCOCK, District Judge: **

J.D. Fields & Company, Inc. appeals the district court’s grant of summary judgment in favor of United States Steel International. The district court held that two separate price quotations sent from United States Steel International could not be construed as offers as a matter of law. The district court further, in a sua sponte grant of summary judgment, held that J.D. Fields could not prove a claim of fraudulent inducement. We affirm in part and reverse in part the district court’s judgment.

Background

United States Steel International (“USSI”) sells and markets steel products manufactured at domestic steel mills for international sale. 1 J.D. Fields is a steelproduet distributor, serving as a conduit between manufacturers and end-users. On at least thirty occasions from 2003 through 2008, J.D. Fields entered into con *273 tracts with USSI to purchase steel products. USSI produced copied documents pertaining to its prior transactions with J.D. Fields. These documents appear to show that, on most occasions, USSI and J.D. Fields followed a general course of dealing. This course of dealing appears to be as follows: (1) J.D. Fields requested a price quotation from USSI, either orally or via email; (2) USSI sent J.D. Fields a price quotation; (3) J.D. Fields sent USSI a purchase order; (4) USSI sent J.D. Fields an order acknowledgment; and (5) USSI shipped the product and sent J.D. Fields an invoice. J.D. Fields contests this general course of dealing, stating that USSI had an “inconsistent pattern of delivering its acknowledgments.”

The current dispute arises out of two specific transactions stemming from a series of emails. In both transactions, it is undisputed that while USSI sent J.D. Fields a price quotation and J.D. Fields responded with a purchase order, USSI never transmitted an order acknowledgment. USSI did, however, correspond with J.D. Fields several times regarding the orders. J.D. Fields contends that the series of emails created two separate binding contracts. Specifically, J.D. Fields asserts that USSI’s price quotations constituted “offers,” which J.D. Fields accepted by submitting purchase orders.

A. First Alleged Contract: Purchase Order 45850

On February 6, 2008, Guillermo Moll, a J.D. Fields representative, sent an email to Kris Blackman, a USSI representative, requesting “price and delivery options” for 800 feet of a type of seamless carbon steel pipe. After a short email exchange between the parties specifying the destination of the product, Blackman responded by email on the same day providing Moll with a price quote. Blackman’s email stated as follows:

I can offer:
800 FT-16" OD x 0.844" WT (SCH80) $2133/mt ($132.30/ft)
Subject to heat lot accumulation 100 tons
Net 30 days
Quote valid for 14 days
Delivery: Rolling end of March

Moll then, on the same day, requested a modification in the steel specifications, asking Blackman if USSI could “roll it to API 5L-X56/60 PSL-2” since the customer had sent Moll a new note. Blackman responded with a new price quote of “$2205/mt ($136.74/ft).”

Five days later, on February 11, 2008, Moll faxed Blackman Purchase Order (“P.O.”) 45850 for 880 feet at a unit price of $136.74 per foot. It is entirely undisputed that 880 feet of the specified type of pipe requires approximately 60 tons of steel. It is also undisputed that “[sjubject to heat lot accumulation 100 tons” means that the steel mill will only roll the steel in a batch of at least 100 tons.

On February 14, 2008, Moll emailed Blackman regarding this order, stating “Please advise when is the expected rolling for the subject PO.” Blackman responded the same day as follows:

The mill has gotten back with me ... this material is subject to heat lot of 100 tons and has to be rolled. This material is subject to roll at the mill the first part of April. Please let me know if we can proceed with the order of 100 tons and if so I will need a revised PO.

It is undisputed that Moll never sent a revised purchase order. It is also undisputed that USSI never remitted an order acknowledgment regarding P.O. 45850.

On March 26, 2008, another email exchange took place between the parties re *274 garding P.O. 45850. Moll initially contacted Blackman stating:

Per our conversation of last Wednesday pertaining the subject purchase order, could you please provide us with an update on the heat-lot accumulation and where this order stands, including the increase? Also, please send to us an order confirmation form [sic] the mill.

Blackman responded the same day as follows:

I have ran [sic] my traps and have not found any other order to piggy back on, so that means 100 tons minimum and I can not [sic] deliver this until August 08 and is subject to price increase. Let me know how you would like to proceed.

Moll then responded:

Thank you for your reply; unfortunately, we cannot keep our overseas customers waiting indefinitely, we have to give them a more accurate answer or we risk loosing [sic] them. Therefore, we are looking into increasing our order to the point you have the minimum 100 tons; have you received any other orders for this size? Please advise when we can have the material rolled considering that we will reach the 100 tons.

As the district court noted, Moll alleged in his deposition testimony that he also discussed this order with Blackman on the phone and stated that, “if need be, we will go up to 100 tons.” However, Moll never sent a revised purchase order for an order of 100 tons or greater.

On April 24, 2008, Moll sent another email to Tom Verellen, Blackman’s supervisor at USSI, requesting a status update and order acknowledgment regarding purchase orders 45850 and 46110. 2 In regards to P.O. 45850, Moll wrote the following:

We would like to bring to your attention the following matters, for which we kindly request a prompt reply: PO #45850:
1) Order placed in 02.11.08
2) In March of this year we were advised that you did not have any other orders for the material ordered and that you needed 100 NT minimum.
3) On 03.26.08 we advised we would increase the order to 100 NT
4) On 04.10.08 we requested an update on the delivery, to no avail. We are yet to see an acknowledgment.

Verellen responded that Blackman would respond to the email when he returned to town the following week. Blackman’s follow-up email to Moll, sent on May 30, 2008, stated:

I will attempt to address the issues below.

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Bluebook (online)
426 F. App'x 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jd-fields-co-v-united-states-steel-international-inc-ca5-2011.