Kovatch Mobile Equipment Corp. v. Warren Township

831 F. Supp. 665, 1993 U.S. Dist. LEXIS 11862, 1993 WL 327263
CourtDistrict Court, S.D. Indiana
DecidedFebruary 5, 1993
DocketIP 91-1249-C
StatusPublished
Cited by1 cases

This text of 831 F. Supp. 665 (Kovatch Mobile Equipment Corp. v. Warren Township) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kovatch Mobile Equipment Corp. v. Warren Township, 831 F. Supp. 665, 1993 U.S. Dist. LEXIS 11862, 1993 WL 327263 (S.D. Ind. 1993).

Opinion

ENTRY

BARKER, District Judge.

This matter is before the Court to address Warren Township’s and Terre Haute First National Bank’s motions for dismissal under Fed.R.Civ.P. 12(b)(6) and Warren Township’s, Terre Haute First National' Bank’s, and Kovatch Mobile Equipment’s motions for summary judgment under Fed.R.Civ.P. 56. The motions are fully briefed, and upon review, the Court GRANTS, in part, and DENIES, in part, Warren Township’s motion to dismiss, GRANTS Terre Haute’s motion to dismiss, DENIES Warren Township’s motion for summary judgment, DENIES Terre Haute’s motion for summary judgment, and DENIES Kovateh’s motion for summary judgment.

[667]*667 I. Background

In early 1989, Warren Township wanted to lease, with an option to purchase, a new firetruck. Kovateh Mobile Equipment (a manufacturer and seller of “firetrueks and related equipment”) and Leasing Unlimited (a financial leasing company) submitted a joint bid, ostensibly where Leasing Unlimited would purchase a firetruck from Kovateh, and Leasing Unlimited would lease/sell that firetruck to Warren Township. Warren Township eventually accepted their bid, and in April of 1989, Warren Township and Leasing Unlimited executed the “Equipment Lease/Purchase Agreement,” whereby Leasing Unlimited agregd to lease/purchase a KME Model 1250 G.P.M. Renegade Pumper; the agreement also provided that “so long as the Lessee [Warren Township] shall not be in default ... [title] shall vest permanently in Lessee [Warren Township] upon the completion of all rental payments specified in the Exhibit B of this Agreement....” The Equipment Lease/Purchase Agreement provided, “To secure all obligations of [Warren Township] hereunder, [Warren Township] hereby grants to Lessor a security interest in any and all of [its] right, title and interest in and to this agreement, the Equipment____”

In May of 1989, Kovateh and Warren Township executed the “Agreement of Sale,” which states that Kovateh is to furnish Warren Township the KME Model 1250 G.P.M. Renegade Pumper and that “[t]he purchase price to be paid by the BUYER for the apparatus and equipment shall be as follows: ... TOTAL NET PRICE DUE ON DELIVERY: $167,799.00.” However, in a typewritten addendum, the Agreement of Sale provides that:

Above amount will be Invoiced to and Paid by Leasing Company on delivery of apparatus:
Leasing Unlimited
P.O. Box 2475
Anderson, Indiana 46018

The Agreement of Sale further states that:

6. It is agreed that the apparatus and equipment covered by this Agreement shall remain the property of [Kovateh] until the .entire purchase price has been paid, ... and in case of any default in payment, [Kovateh] may take possession of the apparatus and equipment, ... and any payments that have been made shall be applied as rent in full for the use of the apparatus and equipment up to date of taking possession. [Warren Township] further agrees that it shall not place the apparatus into fire services until full payment of the purchase price has been made.
9. This Agreement contains all of the terms and conditions agreed upon by the parties with reference - to the apparatus and equipment specified herein, and takes precedence over all previous negotiations or agreements concerning said apparatus and equipment. Each of the parties agrees that it has not executed this Agreement in reliance upon any warranty, representation or promise other than those contained herein.
10. This Agreement may not be modified, except in writing, executed by the party to be bound by such modification.

Shortly after Kovateh and’Warren Township executed the Agreement of Sale, on June 9,1989, Leasing Unlimited assigned the Equipment Lease/Purchase Agreement to Terre Haute First National Bank in exchange for $125,514.21.

Approximately one year later, on or about April 16, 1990, Kovateh delivered its newly manufactured firetruck to Warren Township. Warren Township accepted the firetruck “[i]n accordance with the terms of the Equipment Lease/Purchase Agreement ... between Leasing Unlimited, Inc. ... and the undersigned [Warren Township.]” See Equipment Lease/Purehase Agreement, Exhibit H. At the time of delivery, neither Leasing Unlimited nor Terre Haute First National Bank paid Kovateh for the firetruck, however. Rather, on April 18, 1990, Leasing Unlimited tendered Kovateh a promissory note, due on or before May 18, 1990, for $167,799.00 (the net price of the firetruck.) Kovateh received only partial payment on that note ($79,000.00), and filed this lawsuit against Warren Township and Leasing Unlimited.

[668]*668Kovatch subsequently filed a three count Amended Complaint, in which.Kovatch seeks possession of the firetruck under a theory of replevin (Count I), and, in the alternative, requests damages from Warren Township and/or Leasing Unlimited and/or Terre Haute First National Bank for breach of contract (Count II) and claims Warren Township and/or Leasing Unlimited and/or Terre Haute First National Bank must pay Kovatch $88,799.00, the remaining sum- due on the promissory note, under the theory of quantum meruit (Count III).1 The Amended Complaint makes no mention of Leasing Unlimited’s promissory note. Terre Haute and Warren Township, in turn, each filed counterclaims against Kovatch and Leasing Unlimited.

II. Discussion

Warren Township’s Motion to Dismiss

A. Warren Township moves to dismiss Count I on the basis- that Kovatch fails to state a claim for replevin. Warren Township asserts that because Kovatch breached the Agreement of Sale by not collecting payment when it delivered the firetruck, it has no enforceable claim to possession under the Agreement of Sale, citing Potomac Insurance Co. v. Stanley, 281 F.2d 775, 781 (7th Cir.1960) (it is an “established principal of law in Indiana that one who would seek to enforce a contract for his benefit must show that he has performed all conditions oh his part required to be performed as a condition precedent to his right”). In response, Kovatch states that it is entitled to possession of the firetruck under the Agreement of Sale, that it did not breach any material element of the contract, that it made a good faith effort to comply with the contract, and that the contract was modified by the parties’ conduct.

“A replevin action is a speedy statutory remedy designed to allow one to recover possession of property wrongfully held or detained as well as any damages incidental to the detention.” State Exchange Bank v. Teague, 495 N.E.2d 262, 266 (Ind.Ct.App.1986) (citations omitted). The only issue necessarily decided in a replevin action is the right to present possession. Id.

Kovatch has pled in its Amended Complaint that it has not yet been fully paid for the firetruck, and under paragraph six of the Agreement of Sale, it is entitled to take possession of the truck.

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Cite This Page — Counsel Stack

Bluebook (online)
831 F. Supp. 665, 1993 U.S. Dist. LEXIS 11862, 1993 WL 327263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kovatch-mobile-equipment-corp-v-warren-township-insd-1993.