Jeff Goolsby v. Gain Technologies, Inc.

362 F. App'x 123
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 21, 2010
Docket08-16587
StatusUnpublished
Cited by7 cases

This text of 362 F. App'x 123 (Jeff Goolsby v. Gain Technologies, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeff Goolsby v. Gain Technologies, Inc., 362 F. App'x 123 (11th Cir. 2010).

Opinion

PER CURIAM:

Plaintiff Jeff Goolsby, who proceeds pro se, sued the Defendants for negligence in connection with their design and construction of a steel mold intended to be used for the manufacture of after-market rearview mirrors for automobiles, for which Goolsby holds a patent. Goolsby appeals the district court’s grant of summary judgment in favor of the Defendants and denials of his motions to amend his complaint. After review, we affirm.

I. BACKGROUND

The rather convoluted factual and procedural history of this case requires that we *125 give a full background explanation before analyzing the issues on appeal.

A. The Parties

Plaintiff Goolsby is the record inventor and owner of U.S. Patent No. 6,270,225 Bl, titled “Blind Spot Sideview Mirrors.” The patent covers a three-plane side-view mirror for use on automobiles and is intended to “provide an adequate display of vehicles in the regular view area, the overtaking area, and the blind spot area in one single contiguous mirror.”

The Defendants are (1) Plastic Molded Technologies, Inc., d/b/a Gain Technologies, Inc. (“Gain”), (2) Mike Ladney, Gain’s President, (3) Edward Smith, Gain’s Vice President, and (4) Jim Teasdale, Gain’s Chief Financial Officer. Gain is a manufacturer of plastic products using a “gas assist injection” system.

B. 2003-2004

In June 2003, Goolsby contacted Gain by letter, stating, “I saw your website and would like to get you to build some plastic mirrors for us.” Goolsby requested that the mirrors be made of “Exterior Automotive Grade ABS plastic.” A chromed mirrored finish and adhesive then would be applied to the plastic mirrors.

Goolsby and Gain negotiated the terms of a production agreement throughout 2003 and 2004. On May 27, 2004, Defendant Vice President Smith sent Goolsby a revised proposal for the mirror production contract, for the first time proposing use of a “1-2 Cavity P20 Steel Production Family Injection Mold (Base substrate with mirror finish on cavity).” The cost for manufacturing this proposed 1-2 cavity P20 mold was $27,900.00. Goolsby later testified that he had no role in Gain’s alleged decision to use P20 steel in creating the injection mold. 1

On July 27, 2004, Defendant Smith again sent Gain’s proposal to Goolsby. The July 27, 2004 proposal states: “The mirror includes a base substrate made with platable grade ABS. The substrate will then be sent out to be first surface chrome plated. The parts will be returned to GAIN Technologies, inspected and approximately 6 square inches of a peel and stick adhesive tape added to the back for applying the aftermarket mirror to current OEM mirror.” The July 27, 2004 proposal listed as “Production Option 2” a “Primary Tooling” of “1-4 Cavity P20 Steel Production Family Injection Mold (Base substrate with mirror finish on cavity)” at a cost of $39,800. The proposal listed the “Total Tooling Cost” for Production Option 2 as $59,600. Gain proposed to begin production within “10 weeks to first shots from receipt [of] purchase order, full math data and 50% tooling deposit.”

On August 27, 2004, Goolsby sent to Defendant Smith at Gain four checks totaling $29,800, all drawn as cash advances on Goolsby’s credit cards, representing half the total tooling cost of Gain’s proposal as the deposit for Gain to build the molds necessary to produce the mirror.

On September 14, 2004, Goolsby sent back a signed acceptance to Gain of its July 27, 2004 proposal, including the use of “Production Option 2” and a four-cavity P20 steel production family injection mold.

C.2005-2007

It is undisputed that Gain experienced difficulties in manufacturing a mirror to *126 meet Goolsby’s requirements. Correspondence between Goolsby and individuals at Gain in 2004 and 2005 illustrated several quality issues that arose during the production process.

On August 10, 2005, Jim Byrd, Gain’s Vice President and General Manager, sent an email to Defendant Smith at Gain, stating:

I have attempted to do everything in our power and expertise to perfect the mirror for Mr. Goolsby, I have come to the conclusion we have no more option [sic] to explore, every time we send him parts, he changes his thoughts so many different directions it is very difficult to understand what it is he wants. The gold mirror in which [sic] we sent him is the best of the best. He liked the appearance but as you can see by his e mail again we go off on different tangents. What is the solution? ANY THOUGHTS.

On March 23, 2006, Defendant Smith sent Goolsby a letter describing the history of Gain’s production attempts and the various quality-control issues that arose during production. Gain offered to reproduce the mirror molds in “420 stainless steel with a Rockwell [hardness] of 48-52 and then nickel plate the mold once we have approved parts. Both of these are engineering changes. I have verbally quoted the stainless steel pricing and can provide a hard quote for these changes if you desire. The additional research and development have been done for you at absolutely no cost to you.”

Gain eventually created a single-cavity mold out of stainless steel. Goolsby rejected the mirror produced using this stainless steel mold as well, contending the final product was insufficient. Goolsby asserted this error arose because Gain polished the stainless steel mold to the point it was a “concave” surface no longer fit for producing a flat optical quality mirror. But Goolsby admits he never examined the mold itself.

On March 23, 2006, Goolsby sent a letter to Eric Kirkland, Engineering Manager of Caprock Manufacturing in Lubbock, Texas. Goolsby included some of the exterior mirrors manufactured by Gain. Goolsby explained his concerns with Gain’s manufacturing process: “They [Gain] used P20 steel on the mirror plates in the mold and they have not been able to remove the orange peel appearance.” Goolsby sought a quote from Kirkland to make the mirrors, stating, “If they [Gain] do not make the new mirror plates with suitable metal and start making marketable mirrors in two weeks from last Monday, I will need to make a change.”

In further correspondence, Goolsby informed Kirkland that he had discussed his mirrors with “numerous experts” in optical finish and was told it would be impossible to make an optical finish on the mirrors using P20 steel and that stainless steel could produce an optical finish if correctly honed and polished. Kirkland responded, ‘You’re correct. The cavity plates should be stainless, and should be polished to a mirror finish.”

On April 21, 2006, Goolsby sent a letter to Defendants President Ladney and Vice President Smith detailing his impressions of Gain’s mistakes in attempting to produce the mirrors and threatening to file a lawsuit. Goolsby stated:

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