MERRELL LOGISTICS v. GREGORY GAS SERVICES

2021 OK CIV APP 47
CourtCourt of Civil Appeals of Oklahoma
DecidedSeptember 17, 2021
StatusPublished

This text of 2021 OK CIV APP 47 (MERRELL LOGISTICS v. GREGORY GAS SERVICES) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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MERRELL LOGISTICS v. GREGORY GAS SERVICES, 2021 OK CIV APP 47 (Okla. Ct. App. 2021).

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MERRELL LOGISTICS v. GREGORY GAS SERVICES
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MERRELL LOGISTICS v. GREGORY GAS SERVICES
2021 OK CIV APP 47
Case Number: 118276
Decided: 09/17/2021
Mandate Issued: 12/17/2021
DIVISION II
THE COURT OF CIVIL APPEALS OF THE STATE OF OKLAHOMA, DIVISION II


Cite as: 2021 OK CIV APP 47, __ P.3d __

MERRELL LOGISTICS, L.L.C., Plaintiff/Appellant,
v.
GREGORY GAS SERVICES, L.L.C., Defendant/Appellee.

APPEAL FROM THE DISTRICT COURT OF
TULSA COUNTY, OKLAHOMA

HONORABLE LINDA G. MORRISSEY, TRIAL JUDGE

AFFIRMED IN PART AND REVERSED IN PART

Heath E. Hardcastle, James W. Rusher, James D. Hopper, ALBRIGHT, RUSHER & HARDCASTLE, Tulsa, Oklahoma, for Plaintiff/Appellant

Charles E. Wetsel, TEAGUE & WETSEL, PLLC, Edmond, Oklahoma, for Defendant/Appellee

GREGORY C. BLACKWELL, JUDGE:

¶1 The plaintiff, Merrell Logistics, LLC, appeals a judgment, entered after jury trial, in favor of the defendant, Gregory Gas Services, LLC. Merrell claims the trial court erred in failing to dismiss all of Gregory's counterclaims on the basis of federal preemption prior to trial and that the jury's grant of $75,000 for damages to business reputation was contrary to law. On review, we affirm the trial court's denial of Merrell's efforts to dismiss Gregory's counterclaims on preemption grounds because Merrell waived that argument--an affirmative defense--by waiting until the morning of trial to raise the issue. However, we reverse the judgment insofar as it awarded Gregory $75,000 in damages for harm to its business reputation based on a simple breach of contract. As such, the judgment against Merrell for $34,905.50 for breach of contract is affirmed and the judgment against Merrell for $75,000 for "damage to business reputation" is reversed.

BACKGROUND

¶2 This matter began with what was to be a routine shipping transaction. Gregory is a manufacturer/refurbisher/dealer of gas-processing equipment. Gregory needed to ship several loads of equipment, which together comprised a "triethylene glycol regeneration skid unit" (TEG unit), from its shop in Shawnee, Oklahoma, to a client's worksite in Butler, Pennsylvania. Gregory contacted Merrell, a transportation broker, to arrange the shipment. Merrell, in turn, contracted with a shipping company to actually move the equipment. However, when the TEG unit arrived in Butler, a large component--described in the record as a "vessel" or "separator"--was missing. The loss of the vessel meant that the TEG unit could not be immediately put into service.1

¶3 Gregory located a replacement vessel, and Merrell arranged transportation of the new part to Butler through another shipper. The new shipper's driver deviated from the route Gregory had provided Merrell and the truck was eventually completely immobilized. A tractor-trailer tow-truck crew was called in to perform an extraction. Of course, all of this further increased the time before the TEG unit could be put into service, which increased costs to Gregory's client.

¶4 Merrell charged Gregory $23,397.50, in seven separate invoices, for its services. Gregory refused to pay any of the invoices, and Merrell sued to recover payment. Gregory answered and filed counterclaims against Merrell for breach of contract, negligence, negligent entrustment, and damage to business reputation.

2 Before trial, the court entered partial summary judgment in favor of Merrell as to a portion of its invoices, awarding $17,137.50, being full payment for five out of the seven invoices. The case proceeded to a jury trial on Merrell's outstanding claim for payment, being $6,250, as well as Gregory's counterclaims.

¶5 On the morning of trial, Merrell filed a motion to dismiss Gregory's counterclaims, arguing for the first time that they were preempted by federal law and that the state court therefore lacked subject matter jurisdiction. The trial court took the request under advisement but proceeded with the trial. The only witnesses at trial were the principals of Gregory and Merrell, being James Gregory and Darryl Sartwell, respectively. The jury returned five separate verdicts, as follows:

(1) As to Merrell's claim for payments on its outstanding invoices, the jury found in favor of Merrell, but awarded just $3,000 of the outstanding $6,250 in claimed invoices.
(2) On Gregory's counterclaim for breach of contract, the jury found in favor of Gregory and awarded $34,905.50 in damages.
(3) On Gregory's counterclaim for negligence, the jury found in favor of Merrell.
(4) On Gregory's counterclaim for negligent entrustment, the jury found in favor of Merrell.
(5) On Gregory's claim for damage to business reputation, the jury found in favor of Gregory, and awarded $75,000 in damages.

After the verdicts were in, but prior to the entry of judgment, Merrell twice renewed its motion to dismiss based on preemption. The trial court denied all such motions, and entered a written judgment memorializing the jury's verdicts. Merrell alone appeals.

STANDARD OF REVIEW

In an action at law, a jury verdict is conclusive as to all disputed facts and all conflicting statements, and where there is any competent evidence reasonably tending to support the verdict of the jury, this Court will not disturb the jury's verdict or the trial court's judgment based thereon. Where such competent evidence exists, and no prejudicial errors are shown in the trial court's instructions to the jury or rulings on legal questions presented during trial, the verdict will not be disturbed on appeal.

Florafax International, Inc. v. GTE Market Resources, Inc.,

1997 OK 7, ¶ 3, 933 P.2d 282 (citations omitted).

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2021 OK CIV APP 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrell-logistics-v-gregory-gas-services-oklacivapp-2021.