Maverick Group Marketing, Inc. v. Worx Environmental Products, Inc.

99 F. Supp. 3d 822, 2015 U.S. Dist. LEXIS 46417, 2015 WL 1602102
District Court, W.D. Tennessee·Decided April 9, 2015·No. Case No. 2:13-cv-02268-tmp·Published·Cited by 5 cases

Opinion

ORDER ON MOTIONS FOR SUMMARY JUDGMENT

S. THOMAS ANDERSON, District Judge.

Before the Court are the parties’ cross-motions for summary judgment. First, On January 8, 2015, Defendants Worx Environmental Products, Ltd., Worx Environmental Products of Canada, Inc., and Worx Environmental Products, Inc. (collectively, ‘Worx”) filed a Motion for Summary Judgment on the claims asserted by Plaintiff Maverick Group Marketing, Inc. (“Maverick”). (ECF No. 56). Maverick responded on February 4, 2015 (ECF No. 62), to which Worx replied on February 18, 2015. (ECF No. 67). Second, on January 13, 2015, Maverick filed its Motion for Summary Judgment. (ECF No. 58). Maverick’s Motion seeks partial summary judgment on its claims against Worx and full summary judgment on Worx’s counter[827] claims against Maverick. Worx filed its Response on February 10, 2015 (ECF No. 64), to which Maverick, filed its Reply on February 27, 2015. (ECF No. 69).

FAILURE TO COMPLY WITH LOCAL RULES

Local Rule 56.1(a) mandates that each party should provide a “separate, concise statement of material facts as to which the moving party contends there is no genuine issue for trial.” That concise statement of facts “shall not exceed 10 pages without prior Court approval.” Maverick’s Statement of Undisputed Facts, affixed to its Motion for Summary Judgment, contains 92 separately numbered paragraphs and spans IB pages without prior court approval. Although the Court here considers the additional material, such a voluminous statement of facts containing issues irrelevant to the legal questions presented for summary judgment is inappropriate.

More importantly, in responding to its opponent’s statement of facts, each party took some liberty in presenting its case rather than simply disputing a statement and citing to the record, as required by the Local Rule. Argument in responses to statements of material facts clouds issues and encumbers the court with motions-within-motions. Furthermore, the parties’ lengthy, conclusory statements of fact left the Court with little room to begin to discuss questions of law: in total, the Court counts only 29 out of a possible 162 “facts” as simply “undisputed.” Most of these uncontested facts are references to dates, the death of certain witnesses, each company’s business purpose, and general statements about the relevant actors.

BACKGROUND

Worx is a manufacturer of environmentally-friendly cleaning products. (Worx’s Statement of Undisputed Facts ¶ 1, ECF No. 56-2). Maverick is a marketing company whose sole owner is John Garrison. (Id. ¶ 2). On February 12, 2007, Maverick and Worx executed a Marketing Agency Agreement (the “Agreement”), which forms the basis for this lawsuit. (Maverick’s Statement of Undisputed Facts ¶ 8, ECF No. ’59). From this point on, the parties essentially “dispute” every material fact in question, but some facts are clear. After the parties executed the Agreement, Maverick began its attempt to establish a relationship with Wal-Mart, one of Maverick’s accounts, for the benefit Worx. At some point in 2007 or 2008, a previous outside consultant named Sergio Abarca became Worx’s Vice President. (Id. ¶ 36). Garrison continued to pursue a business relationship with Wal-Mart and communicated with Abarca during the process. Abarca also began contacting Wal-Mart on his own. On February 2, 2009, Abarca drafted a letter to Garrison and sent it as an email attachment on February 8, 2009. Worx claims that this letter terminated the Agreement. Garrison and Abarca had some communication after the February 8 email until Abarca sent another email purporting to terminate the Agreement on March 10, 2009. Maverick claims that this email terminated the Agreement, if the Agreement was terminated at all. Maverick then ceased communication with Wal-Mart and Worx.

Abarca continued to pursue Wal-Mart business, as evidenced by a string of emails between Abarca and Wal-Mart buyer Zach Freeze. The parties dispute the legal significance of these emails with regard to whether they imply that’ an “order” had been “solicited” under the Agreement. In a July 2, 2009 email, Abarca wrote to several Worx employees: “We just finished the teleconference with Wal-Mart. I am pleased to announce that we got a three-year contract. It is also confirmed that there are a total of 3,100 centers that we will service.” (Id. ¶ 61; Email from Sergio Abarca to Jack Neufeld et al. (July 2, 2009, 9:42 AM), ECF No. [828]*82860-2, PageID 630).1 On July 31, 2009, Wal-Mart ordered 3,118 cases of Worx product and sent a Production Notice. (Maverick’s Statement of Undisputed Facts ¶ 63). On August 25, Wal-Mart received shipments of Worx product. (Id. ¶ 64). On August 26, Wal-Mart drafted an “award letter” to Worx. (Id. ¶ 65). Worx never paid commissions to Maverick.

Maverick filed its complaint in the Chancery Court of Shelby County, Tennessee on March 27, 2013, and Worx removed the action to this Court on May 1, 2013. (ECF No. 1). Maverick then filed an Amended Complaint with Court approval on September 18, 2013. (ECF No. 41). The Amended Complaint seeks damages for breach of contract and unjust enrichment, as well as declaratory relief. Worx answered and counterclaimed, asserting that Maverick breached the agreement, misrepresented a material fact, and committed fraud. (ECF No. 24, 42). Maverick claims that it is entitled to commissions under the Agreement’s provisions for post-termination commissions on “orders solicited,” discussed in detail below. Worx, on the other hand, claims that Maverick never solicited any orders and therefore is not entitled to commissions under the Agreement. Whether Maverick is entitled to commissions also hinges on timing: the Agreement provides for commissions on “orders solicited prior to the effective date” of termination. That effective date of termination is 120 days from effective notice.

STANDARD OF REVIEW

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Maverick Group Marketing, Inc. v. Worx Environmental Products, Inc., 99 F. Supp. 3d 822, 2015 U.S. Dist. LEXIS 46417, 2015 WL 1602102 (W.D. Tenn. 2015).

99 F. Supp. 3d 822 (Maverick Group Marketing, Inc. v. Worx Environmental Products, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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