LATINO FOOD MARKETERS, LLC AND MEXICAN CHEESE PRODUCERS, INC. v. OLÉ MEXICAN FOODS, INC.

407 F.3d 876, 2005 U.S. App. LEXIS 8464, 2005 WL 1163618
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 12, 2005
Docket04-2691
StatusPublished
Cited by6 cases

This text of 407 F.3d 876 (LATINO FOOD MARKETERS, LLC AND MEXICAN CHEESE PRODUCERS, INC. v. OLÉ MEXICAN FOODS, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LATINO FOOD MARKETERS, LLC AND MEXICAN CHEESE PRODUCERS, INC. v. OLÉ MEXICAN FOODS, INC., 407 F.3d 876, 2005 U.S. App. LEXIS 8464, 2005 WL 1163618 (7th Cir. 2005).

Opinion

TERENCE T. EVANS, Circuit Judge.

At long last, Latino Food Marketers and Olé Mexican Foods have come to an agreement. Unfortunately, the only thing they agree on is that they disagree about whether they ever made an agreement in the first place. A jury found that they did not, and Olé, the party unhappy with the verdict, appeals.

Latino sells Mexican-style cheese products made by a company, Mexican Cheese Producers, Inc. Miguel and Martina Leal are the controlling owners of both companies. Olé, which sold cheese manufactured by Mexican Cheese Producers for several years, began buying directly from Latino in September 2001.

The two sides soon began negotiating a 3-year contract for Olé to continue buying cheese directly from Latino. The biggest sticking point was that Latino wanted Olé to promise to buy exclusively from Latino, while Olé wanted to be free to purchase from other manufacturers. On November 9, 2001, Olé faxed Latino a draft contract that did not promise exclusivity. Three days later, Latino handwrote changes that made the contract exclusive, limited a lower price guarantee from the entire world to the southeast United States, and allowed for mutual changes in the products covered. Leal signed the contract and faxed it to Olé, with instructions for Veronica Moreno, vice-president of Olé, to sign the agreement and fax it back to Latino.

This case essentially turns on what happened next. Olé says it signed the agreement and sent it back to Latino by Federal Express on November 16, 2001. Latino claims it never received a signed contract. On November 21, Moreno called Leal, angry that Latino had threatened to stop shipping Olé’s orders because it had not been paid. Leal claims that Moreno told him that she would not sign the contract. On November 29, Leal sent an e-mail to Albert Garcia, Latino’s future sales broker, telling him that Moreno did not want to sign the contract.

Despite the dispute, Latino continued shipping products and Olé continued paying for them, even as both sides complained about the other’s performance on numerous occasions. Although it was still selling to Olé, Latino claims it never thought the two sides had agreed to the original deal and did not realize that Olé thought there was a valid contract until the two sides met on February 10, 2003, to discuss a number of issues. After that meeting, Latino asked to see the signed contract. Olé faxed Latino a copy of the proposed deal, but it was not signed by Olé.

Dealings between the two companies finally broke down in April 2003. Latino filed suit in the Western District of Wisconsin, claiming Olé owed it more than $1.1 million for cheese it had received from Latino. Olé responded with its own suit for 17 causes of action against Latino in the Northern District of Georgia. The Georgia court eventually dismissed Olé’s lawsuit under the first-to-file rule. Olé then filed a motion to dismiss the Wisconsin suit based on a forum selection clause in the disputed contract that required all litigation to be brought in Georgia.

The district court (Chief Judge Barbara B. Crabb) scheduled an evidentiary hearing on Olé’s motion to dismiss. Just before the hearing, Olé produced what it claimed was a valid, signed copy of the contract. Because Latino disputed its authenticity, however, the hearing proceeded. After 3 days of testimony and argument, *879 Judge Crabb concluded (for purposes of venue only regarding the forum selection clause) that Olé did not show that a valid contract existed, meaning that the suit could continue in the Wisconsin court. Olé filed its answer, along with 17 counterclaims, 16 of which were dismissed.

The case then proceeded to trial. The jury found that the parties never entered into the disputed contract but also found in favor of Olé on part of its claim that Latino breached its duty of good faith. At the end of the day, Olé owed Latino $1,121,913 on its contract claim, and Latino owed Olé $954 on its good-faith claim. Olé appeals, claiming that Judge Crabb erred (1) in denying its motion for directed verdict, (2) in failing to give certain jury instructions, and (3) in improperly placing the burden of proof on Olé rather than Latino. Olé also argues the judge erred in failing to admit evidence of FDA standards for unfit products and in granting Latino’s motion for summary judgment on Olé’s fraudulent misrepresentation counterclaim.

Olé first argues that the judge erred in denying its motion for judgment as a matter of law on the question of whether Ole and Latino entered into the contract in question. We review the denial de novo and will affirm if any reasonable jury could have found that there was no agreement. Our job is not to determine whether the jury believed the right people, but only to assure that it was presented with a legally sufficient basis to support its verdict. See Harvey v. Office of Banks & Real Estate, 377 F.3d 698, 707 (7th Cir.2004).

Olé argues that, whether or not both sides actually signed the contract, the evidence was clear that they agreed to it. It suggests that Moreno orally agreed to Latino’s proposed changes to Olé’s written contract offer during the November 2001 phone call with Leal. Latino contends the two sides were still negotiating and never came to a full understanding.

Wisconsin law governs this case, and under that law, although an agreement need not be in writing to be valid, see Zeige Distrib. Co. v. All Kitchens, Inc., 63 F.3d 609, 612 (7th Cir.1995) (“[I]n order for acceptance of a contract to occur, there must be a meeting of the minds, a factual condition that can be demonstrated by word or deed.”), the jury here could most certainly have reasonably concluded that there was no agreement. Moreno testified that, during her phone call with Leal, the parties agreed to certain changes, then promised that both would sign the agreement. But Leal testified that the week after he faxed the proposed amended contract to Olé, Moreno called him and threatened not to sign it. That threat suggests that she did not think that the parties would be bound until the contract was signed; otherwise, it would have been little more than an empty threat. And if Olé was free to back out of the deal, as Moreno seems to have thought, so was Latino. Thus, it was reasonable for the jury to find that there was no agreement.

Olé also claims the fact that Latino shipped products to it proved that Latino believed the two sides had an agreement. While that is one plausible interpretation, it is also reasonable to imagine that Latino continued shipping products to Olé simply because it wanted to make as many sales as possible, regardless of whether it believed the two sides had made any binding contractual promises to each other. Deciding which explanation made more sense was best left to the jury, and Judge Crabb did not err in failing to substitute her judgment for its after the verdict was returned.

In a related argument, Olé claims that the judge erred in failing to *880 give the Wisconsin pattern jury charge instructing that acceptance of a contract may be inferred from conduct.

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407 F.3d 876, 2005 U.S. App. LEXIS 8464, 2005 WL 1163618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latino-food-marketers-llc-and-mexican-cheese-producers-inc-v-ole-ca7-2005.