May Trucking Co. v. Northwest Volvo Trucks, Inc.

241 P.3d 729, 238 Or. App. 21, 2010 Ore. App. LEXIS 1228
CourtCourt of Appeals of Oregon
DecidedOctober 20, 2010
Docket03C17564; A136410
StatusPublished
Cited by5 cases

This text of 241 P.3d 729 (May Trucking Co. v. Northwest Volvo Trucks, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
May Trucking Co. v. Northwest Volvo Trucks, Inc., 241 P.3d 729, 238 Or. App. 21, 2010 Ore. App. LEXIS 1228 (Or. Ct. App. 2010).

Opinion

*24 LANDAU, P. J.

This is a case about unsuccessful negotiations for the sale of a large number of trucks and the intersection between the seventeenth-century statute of frauds and twenty-first century electronic mail. Along the way, there are allegations of breach of contract and the fabrication of documents, as well as issues of equitable estoppel, prejudgment interest, and appellate procedure.

By way of introduction to this civil litigation morass, we begin with the following summary. Plaintiff May Trucking Company needed to purchase a number of new trucks. It negotiated with a truck manufacturer, defendant Volvo Trucks North America, Inc. (VTNA), and with two of its dealers, defendants Northwest Volvo Trucks, Inc., and TEC Equipment, Inc. (collectively, TEC). The negotiations transpired orally and by email. VTNA eventually decided not to sell its trucks, but, by the time it did so, enough emails had been transmitted to convince plaintiff that it had a deal. Plaintiff sued both TEC and VTNA for breach of contract. VTNA responded that plaintiff had fabricated documents to support its claim and moved to dismiss. The trial court denied the motion. VTNA then moved for summary judgment based on the statute of frauds. This time, the trial court granted VTNA’s motion and dismissed VTNA from the case.

Plaintiff went to trial against TEC and prevailed with a $3.14 million verdict, plus prejudgment interest. TEC and plaintiff settled, agreeing to defer the issue of prejudgment interest; TEC then paid plaintiff everything but the interest. In the meantime, plaintiff appealed the dismissal of VTNA. Shortly after that, the trial court entered an order awarding prejudgment interest on the settlement with TEC.

On appeal, plaintiff contends that the trial court erred in concluding that the contract with VTNA failed for want of compliance with the statute of frauds. VTNA, meanwhile, cross-appeals the denial of its motion to dismiss based on plaintiffs supposed fabrication of documents. VTNA also has filed two motions in this court. First, it moves to strike the trial court’s entry of an order awarding prejudgment interest because the order was entered after the filing of the notice of appeal. Second, VTNA moves to dismiss the appeal on the ground that, plaintiff having satisfied its judgment *25 against TEC, the claim has been extinguished with respect to all obligors under the supposed contract. In the alternative, VTNA argues that plaintiff cannot maintain this appeal because the appeal puts at risk the judgment against TEC from which plaintiff already has received substantial benefit.

We conclude that the trial court did not err in dismissing VTNA on statute of fraud grounds. We also conclude that the trial court correctly denied VTNA’s motion to dismiss. Finally, we deny both of VTNA’s motions. We therefore affirm on the appeal and the cross-appeal.

I. FACTS

Because different standards of review are implicated by the appeal, the cross-appeal, and the motions, we state the facts pertinent to each separately.

A. The Appeal: Contract Negotiations

The appeal pertains to the trial court’s decision to grant VTNA’s motion for summary judgment concerning the question whether the parties had negotiated an enforceable contract. We state the facts in the light most favorable to plaintiff, the nonmoving party.

Plaintiff is an over-the-road carrier that, at the time of the trial, operated a fleet of some 750 tractor trucks in the lower 48 states. As with any carrier, plaintiff was required periodically to replace trucks in its fleet. TEC sold new and used tractor trucks, including Volvo tractor trucks manufactured by VTNA.

In early 2003, plaintiff, TEC, and VTNA began negotiations for the purchase and sale of 499 new tractor trucks over a period of three and one-half years. Detailed discussions continued through mid-July. VTNA participated in a number of the meetings and email exchanges between plaintiff and its dealers, TEC. VTNA and TEC, meanwhile, had their own negotiations about the extent to which VTNA would commit to providing a certain number of trucks at a guaranteed price.

At the end of May, representatives of each of the parties met to see if they could “close the deal.” Marvin May, representing plaintiff, said that he needed a reduced purchase price of $89,000 per tractor. Richard Bell, representing *26 VTNA, replied that he would have to check with VTNA’s headquarters. He spoke with headquarters and confirmed that VTNA could give rebates sufficient to reduce the price. On July 15,2003, Jeff Strong, of TEC, emailed Bell asking for written confirmation of VTNA’s commitment to TEC, so that TEC could make an offer to plaintiff.

On July 16, Bell replied by email with a summary of what he saw as the principal components of the deal and confirming VTNA’s quantity and pricing commitments. Bell recommended that, “upon a signed agreement with the customer,” TEC place orders with VTNA for the next two calendar years. Bell added that “VTNA’s support for this transaction is to TEC Equipment not the customer. You will have to prepare your agreement with May Trucking based upon the support we are providing you.” The emails between Bell and Strong were sent only between representatives of VTNA and TEC; none were sent to plaintiff.

Strong and representatives of plaintiff then exchanged draft forms of a proposed contract. On July 18, 2003, Strong sent a letter to May setting out what he believed to be the terms of the agreement. Notwithstanding Bell’s instruction to Strong in his July 16 email that the contract be between plaintiff and TEC, Strong’s letter described the agreement as one among three parties: plaintiff, TEC, and VTNA. On that same date, Strong and Jeff Denny, VTNA’s district manager for Oregon, called May from Strong’s office to discuss the letter and draft agreement. The parties discussed one paragraph that had been a source of disagreement, the details of which are not necessary to describe. Strong and Denny told May that, if plaintiff would yield the point, the parties had a deal, and Denny told May that if May abandoned the point, he would sign the contract. May agreed, and Strong prepared a final draft of the contract dated July 18, 2003. The final draft listed three parties — plaintiff, TEC, and VTNA — and included a signature line for each.

On July 21, 2003, Strong sent a copy of the draft to VTNA, stating, “Here is our proposal to May that they are signing.” In a July 23, 2003, email from Frank Roehrig, VTNA’s director of sales, to the company’s fleet facilitator and its manager of remarketing, Roehrig included a copy of *27 the July 16 email from Bell to Strong and said, “Here is what [VTNA’s vice-president for sales] & I approved.” That same day, Brian Laymen, VTNA’s fleet facilitator, sent an email to Bell, Roehrig, and others at VTNA stating that

“[i]t appears that we have a commitment from [plaintiff] for a three-year purchase program and that is fantastic.

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Cite This Page — Counsel Stack

Bluebook (online)
241 P.3d 729, 238 Or. App. 21, 2010 Ore. App. LEXIS 1228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/may-trucking-co-v-northwest-volvo-trucks-inc-orctapp-2010.