LAC Enterprises, Inc. v. Wholesale Tree, Inc.

CourtDistrict Court, D. Minnesota
DecidedJanuary 22, 2024
Docket0:22-cv-01291
StatusUnknown

This text of LAC Enterprises, Inc. v. Wholesale Tree, Inc. (LAC Enterprises, Inc. v. Wholesale Tree, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LAC Enterprises, Inc. v. Wholesale Tree, Inc., (mnd 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

LAC Enterprises, Inc., Case No. 22-CV-1291 (KMM/ECW)

Plaintiff,

v. ORDER Wholesale Tree, Inc., and Braun Nursery, Ltd.,

Defendants.

This case involves the loss of 27 oak trees due to an apparent infestation by invasive moths and a dispute about who is to blame for that infestation. Plaintiff LAC Enterprises, Inc. (“LAC”) obtained the trees from Defendant Braun Nursery, Ltd. (“Braun Nursery”) and Wholesale Tree, Inc. (“Wholesale Tree”) (collectively, “Defendants”). LAC alleges that it was forced to incur expenses for the storage, burning, and burial of the affected trees, which were meant to be planted as part of a landscaping contract with the city of Rochester, Minnesota. LAC blames the Defendants for the condition of the trees, which it alleges were infested before delivery, and seeks recovery under several theories of liability. Defendants deny that the trees were infested before LAC received them. Defendants now each move separately for summary judgment. For the following reasons, Defendants’ motions are granted. I. Facts and Procedural History LAC is a landscaping company and a Minnesota corporation. ECF 1-1 at 1.

Wholesale Tree is a Michigan corporation that “provides a diverse selection of premium plant material at field direct prices” and that also acts as a broker between buyers and growers of plants. ECF 27 at 4. Braun Nursery is a Canadian tree grower and seller. ECF 9 at 1. According to the complaint, LAC won a landscaping contract with Rochester in April 2020, which included acquiring and planting a number of oak trees in the city’s downtown area. ECF 1-1 at 4. LAC turned to Wholesale Tree to help it locate the trees

for the Rochester project. Id. Wholesale Tree found the required trees at Braun Nursery, in Ontario, Canada, and LAC agreed to buy them. Id. The trees were transported to the United States by Wilson International, a non-party to this lawsuit. Id. The trees crossed the Canadian border on or around May 25, 2020. See, e.g., ECF 40-1 at 16 (Department of Homeland Security, U.S. Customs and Border Entry Summary).

The trees were sent at LAC’s request to Jim Whiting Nursey & Garden Center (“Whiting Nursery”) in Rochester. Id. Whiting Nursery is also not a party to this lawsuit. There is some confusion in the record as to when the trees arrived at Whiting Nursery. According to the complaint, Whiting Nursery received the trees in “June 2020” Id. But e- mails attached to Wholesale Tree’s summary judgment motion suggest that Whiting

Nursery already had the trees by May 27, 2020. See ECF 28-8 at 1 (e-mail from LAC’s subsidiary Windsor Companies to Wholesale Tree describing condition of trees received at Whiting Nursery). In any event, by the second half of June, the trees were at the nursery and something was clearly and significantly amiss. According to LAC’s complaint, on June 21, 2020, Whiting Nursery “discovered” that the trees were infested with spongy moths.1 Spongy moths are an invasive species to Minnesota that feed on the

leaves of trees, including oaks, leading to defoliation. See Information about the spongy moth, Minnesota Department of Natural Resources, https://www.dnr.state.mn.us/invasives/terrestrialanimals/spongymoth/index.html (last visited January 22, 2024). Repeated defoliation by spongy moths can kill trees. Id. On July 17 and July 20, 2020, an inspector from the Minnesota Department of Agriculture examined the trees and determined the presence of “[g]ypsy moth life stages identified”

on the oak trees. See, e.g., ECF 28-10 at 1–2. The inspector ordered the trees to be quarantined and treated or burned and buried, to prevent further spread of the moths. Id. Soon thereafter, Rochester informed LAC that it would not accept the trees for planting in the project, even if treated. ECF 1-1 at 5. LAC then instructed Whiting Nursery to burn and bury the trees. Id.

LAC commenced this lawsuit on April 8, 2022, by filing a four-count complaint in Hennepin County, Minnesota. See ECF 1-1. Defendant Wholesale Tree removed the case to the federal District of Minnesota on May 12, 2022. See ECF 1. The parties engaged in fact discovery throughout the remainder of 2022 and the beginning of 2023, according to the Court’s Scheduling Order. See ECF 11 (providing a deadline of March 1, 2023 for the

1 The spongy moth is the common name for the species Lymantria dispar. The parties refer to this species as the “gypsy moth.” The term gypsy can have derogatory meaning for Romani people, and the moth’s common name was changed in 2021. See https://www.dnr.state.mn.us/invasives/terrestrialanimals/spongymoth/index.html#:~:text= The%20Entomological%20Society%20of%20America,derogatory%20term%20for%20R omani%20people. The Court will refer to the moths as spongy moths, except when necessary to quote or reference the parties’ briefing or evidence in the record. close of fact discovery). The Scheduling Order also set deadlines for the disclosure of plaintiff’s and defendants’ expert witnesses on January 13, 2023 and February 15, 2023,

respectively, and for the close of expert discovery on April 14, 2023. Id. at 3. On April 18, 2023, LAC attempted to disclose Kimberly Thielen Cremers, a Minnesota Department of Agriculture employee, as an expert witness. ECF 19. LAC’s disclosure stated that Ms. Cremers would “testify to her review of the trees delivered, existence of gypsy moth, how gypsy moth appears and length of time for gypsy moth to develop versus growing on trees.” Id. Three days later, LAC filed three more documents

containing various answers and responses to Defendants’ discovery requests. See ECF 20, 21, and 22. On May 8, 2023, Magistrate Judge Elizabeth Cowan Wright struck LAC’s expert disclosure and other discovery filings during a hearing concerning the timeliness of those filings. ECF 24. Judge Cowan Wright further ordered that LAC was “precluded from relying on Kimberly Thielen Cremers as an expert at trial or in connection with any

dispositive motion. Plaintiff is specifically precluded from relying on Ms. Thielen Cremers to testify as to how gypsy moth appears and length of time for gypsy moth to develop versus growing on trees.” Id. On June 14, 2023, Defendants filed the pending summary judgment motions. See ECF 25, 30. II. Legal Standard

Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322–23 (1986); Dowden v. Cornerstone Nat’l Ins. Co., 11 F.4th 866, 872 (8th Cir. 2021). The moving party must demonstrate that the material facts are undisputed. Celotex, 477 U.S. at 322. A fact is “material” only if its resolution could affect the outcome of the suit under the governing substantive law.

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). When the moving party properly supports a motion for summary judgment, the party opposing summary judgment may not rest on mere allegations or denials, but must show, through the presentation of admissible evidence, that specific facts exist creating a genuine issue for trial. Id. at 256; McGowen, Hurst, Clark & Smith, P.C. v. Com. Bank, 11 F.4th 702, 710 (8th Cir. 2021). A dispute of fact is “genuine” only if “the evidence is such that a

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