Marks Management Corp. v. Reliant Manufacturing Inc.

268 B.R. 505, 2001 U.S. Dist. LEXIS 16519, 2001 WL 1231798
CourtDistrict Court, E.D. Michigan
DecidedSeptember 28, 2001
Docket2:00-cv-74404
StatusPublished
Cited by2 cases

This text of 268 B.R. 505 (Marks Management Corp. v. Reliant Manufacturing Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marks Management Corp. v. Reliant Manufacturing Inc., 268 B.R. 505, 2001 U.S. Dist. LEXIS 16519, 2001 WL 1231798 (E.D. Mich. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

HOOD, District Judge.

I. FACTS.

Appellant Marks Management Services, Inc. (MMS) is a Birmingham, Michigan based sales agency whose president is Ronnie Fain Marks (“Marks”). Mr. Marks was also the president of Genesis, a supplier of automotive supplier, assemblies and door closure systems, who entered into purchase orders with General Motors Corporation (“GM”) to supply parts. MMS is a sales representative agency which services companies in the business of manufacturing and supplying of automotive parts. MMS solicits customers and new sales opportunities. MMS solicited new sale opportunities from GM for Genesis and had the authority to sell and service all of Genesis’ products. MMS and Genesis had an agreement that MMS would receive commissions of 3% on new *508 business obtained for Genesis and 1% on an existing business.

On October 3,1998, Genesis filed a chapter 11 petition in bankruptcy court. As a result of the petition, Genesis’ assets were sold to Reliant Manufacturing, Inc. (“Reliant”) in June of 1999. Defendants contend that in the Bankruptcy Court’s Order Regarding Procedure for Conducting an Auction Sale of Genesis’ Assets dated April 26, 1999, the procedures for the sale of Genesis’ assets were established. It is alleged that Genesis’ purchase orders from GM were expressly excluded. MMS sued Reliant in Macomb County Circuit Court alleging that Reliant was operating under Genesis’ contracts for the C/K v8, APV, and GMT 600 programs with GM and was therefore obligated to pay MMS the commission to which it would have been entitled to under MMS’ sales representative contract with Genesis. Plaintiff contends that it continued to act as a sales representative for Defendant. When Plaintiff requested payment for the alleged overdue sales commissions Defendant refused to pay and the instant suit was filed. Plaintiff alleged: Count I — Breach of Contract; Count II — Violation of Sales Representative Commission Act pursuant to M.C.L.A. § 600.2961(d); Count III — Procuring Cause Doctrine (contract Implied In Fact); Count IV — Quantum Meruit — Unjust Enrichment, Contact Implied In Law; and in Count V — Requested an Order Compelling an Accounting.

On February 24, 2000, the cause of action was removed to the United States Bankruptcy Court for the Eastern District of Michigan, Southern Division. Reliant filed a Motion for Summary Judgment on March 8, 2000. MMS filed an Ex Parte Motion for Extension to file Response to Motion for Summary Judgment and delayed the time for filing a Response until after the Court made its ruling on the Motion for Remand. MMS filed a Motion for Remand and Motion for Leave to File an Amended Complaint. The Motion for Remand was denied by the Bankruptcy Court.

On August 29, 2000, Reliant filed a Notice of Filing of the August 10, 2000 Transcript of Deposition of Ron Marks, a Renewed Motion for Summary Judgment and a Brief in Support of Renewed Motion for Summary Judgment. MMS missed the filing deadline for its Response to the Renewed Motion for Summary Judgment. On September 21, 2000, MMS filed an Ex Parte Motion for Extension to File a Response to Renewed Motion for Summary Judgment Pursuant to LBR 9006-1 and an Amended Ex Parte Motion for Extension to File Response to Renewed Motion for Summary Judgment Pursuant to LBR 9006-(l)(b). On September 22, 2000, Judge Ray Reynolds Graves entered an Order Granting Summary Judgment of Dismissal against MMS and denied MMS Amended Ex Parte Motion for Extension of Time to File Response to the Renewed Motion for Summary Judgment Pursuant to LBR 9006-l(b). On September 25, 2000, MMS filed a Second Amended Ex Parte Motion for Extension of Time to File Response to Renewed Motion for Summary Judgment and Appellant’s Brief in Support of its Response to Reliant’s Renewed Motion Summary Judgment which was also denied on September 27, 2000. Reliant filed a timely Appeal of the Bankruptcy Court’s Order granting of Summary Judgment alleging that a genuine issue of fact exist such that summary judgment was inappropriate.

II. STANDARD OF REVIEW.

The standard of review for bankruptcy decisions is slightly different from the normal standard of review because district courts are not the triers of fact of *509 bankruptcy cases. Investors Credit Corp. v. Batie (In re Batie), 995 F.2d 85, 88 (6th Cir.1993). The bankruptcy court makes initial findings of fact and conclusions of law. Id If its decision is appealed to the district court, the district court is bound by the bankruptcy court’s findings of fact unless they are clearly erroneous. Bankruptcy Rule 8013. The district court reviews the bankruptcy court’s legal conclusions de novo. Batie, 995 F.2d at 88. The bankruptcy court’s decision to grant summary judgment is purely a question of law. Martin v. Ohio Turnpike Comm’n, 968 F.2d 606, 609 (6th Cir.1992). Therefore, the district court review the bankruptcy court grant of summary judgment de novo.

III. WHETHER A MATERIAL FACT EXISTS PRECLUDING SUMMARY JUDGMENT AS TO AN AGENCY AGREEMENT BETWEEN MMS AND RELIANT.

Appellee Reliant relies upon In re AutoStyle Plastics, Inc., 227 B.R. 797 (Bkrtcy.W.D.Mich.1998). Autostyle filed its Chapter 11 petition and immediately sought approval of a transaction to lease and/or sell substantially all of its operating assets to Venture. The order approving the transaction provided that Venture was purchasing the assets free and clear of claims and transferring liens to proceeds. GM canceled its purchase orders to Autostyle and issued new ones to Venture for production of the very same products Autostyle had previously supplied GM. CarTec had been the sales representative for Autostyle and sued Venture in state court to hold it liable for commissions on purchase orders Venture had entered into with GM, alleging that there had been an implied assumption oí Autostyle’s purchase orders and the Car Tech sales representation agreement by Venture. Judge Stevenson granted summary judgment of dismissal to Venture. Because the facts of Autostyle and the instant case are so similar, Appellee contends that the granting of summary judgment similarly is appropriate.

Appellant MMS states that there are factual differences between the instant case and Autostyle. First, MMS alleges that the deposition testimony of Mark confirms MMS’ efforts to negotiation on behalf of Reliant as to the sale of Genesis’ assets to Reliant. Second, MMS contends that Autostyle is distinguishable because the negotiations occurred both prior to and after the sale in the present case. In contrast, in Autostyle the negotiations only occurred pre-sale. Lastly, MMS contends that it was instrumental in causing GM to allow Reliant to become a GM supplier, a fact completely absent in Autostyle.

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Bluebook (online)
268 B.R. 505, 2001 U.S. Dist. LEXIS 16519, 2001 WL 1231798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-management-corp-v-reliant-manufacturing-inc-mied-2001.