Metz Beverage Co. v. Wyoming Beverages, Inc.

2002 WY 21, 39 P.3d 1051, 46 U.C.C. Rep. Serv. 2d (West) 955, 2002 Wyo. LEXIS 20, 2002 WL 188362
CourtWyoming Supreme Court
DecidedFebruary 7, 2002
Docket00-287
StatusPublished
Cited by71 cases

This text of 2002 WY 21 (Metz Beverage Co. v. Wyoming Beverages, Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metz Beverage Co. v. Wyoming Beverages, Inc., 2002 WY 21, 39 P.3d 1051, 46 U.C.C. Rep. Serv. 2d (West) 955, 2002 Wyo. LEXIS 20, 2002 WL 188362 (Wyo. 2002).

Opinion

BROOKS, District Judge.

[¶1] This case is brought by the appellant, Metz Beverage Company (Metz), against the appellee, Wyoming Beverages, Inc. (Wyoming Beverage), alleging the wrongful termination of a distributorship contract.

[¶2] Metz had distributed Pepsi products for approximately 30 years in northeast Wyoming for Wyoming Beverage. In June 1997, Wyoming Beverage notified Metz that their long-term business arrangement would be terminated effective in October of 1997. Thereafter, Wyoming Beverage filed a declaratory action seeking a resolution of the relationship. Metz filed a counterclaim asserting, among other things, breach of contract, fraud, unjust enrichment, promissory estoppel, and a claim seeking an accounting.

[¶3] After extensive discovery and the filing of voluminous motions, the district court granted summary judgment against Metz on Metz's breach of contract, fraud, and unjust enrichment claims. The matter is now before this court upon Metz's appeal of the district court's order and certification pursuant to W.R.C.P. 54(b).

ISSUE

[T4] The issue on appeal is straightforward:

Did the District Court have a proper legal and factual basis to grant summary judgment against Metz as to Metz's claims of breach of contract, fraud and unjust enrichment.

FACTUAL BACKGROUND

[¶5] In 1967, Metz began to distribute Pepsi products in northeast Wyoming for Wyoming Beverage. - That relationship, which continued for 30 years, started as an oral agreement between Forrest Clay of Wyoming Beverage and Buster Metz for Metz. The relationship and agreement appears to have been profitable and amicable for much of the 80 years.

[¶6] In May of 1996, Buster Metz died. On June 12, 1997, Mr. Clay wrote a letter to Dorothy Metz, Buster's widow, stating:

We believe that our oral agreement is terminable at will and that competitive circumstances and business necessities dictate termination of the distribution arrangement. ...
- It is our intention to accomplish the transfer to direct distribution on October 1, 1997(.]

It is undisputed that the original agreement made by Mr. Clay and Mr. Metz, in addition to being oral, was indefinite in terms of its duration. In 1990, the parties began discussing a written agreement. The initial attempts to reach a written agreement failed apparently as a result of the parties' inability to agree as to the proper length of the agreement. Metz sought an agreement that was significantly longer in duration than that proposed by Wyoming Beverage.

[¶7] Between 1992 and 1994, Metz and Wyoming Beverage again tried to negotiate a written contract. Wyoming Beverage insisted on a limited three-year contract with no right of renewal. Metz continued to seek a longer agreement with a provision that any *1055 agreement could only be terminated for cause. During the negotiations, there was extensive communication and correspondence among Mr. Clay and Dorothy and Diana Metz. Diana Metz, Buster's daughter, had become deeply involved in the family business by that time.

[¶8] Mr. Clay, in his correspondence with Metz, often expressed dissatisfaction with the performance of Metz's obligations under the contract and indicated that the failure to correct Metz's performance problems would result in termination of the oral agreement. Ultimately, the parties did not reach a written agreement. Buster Metz died in 1996. Wyoming Beverage terminated the relationship with Metz in October of 1997, and Wyoming Beverage itself took over direct distribution of the Pepsi products in northeast Wyoming.

STANDARD OF REVIEW

[19] Summafi judgment is appropriate when no genuine issue exists as to any material fact and the moving party is entitled to judgment as a matter of law. Covington v. W.R. Grace-Conn., Inc., 952 P.2d 1105, 1106 (Wyo.1998). A genuine issue of material fact exists when a disputed fact, if it were proven, would establish or refute an essential element of a cause of action or a defense that the parties have asserted. Allmaras v. Mudge, 820 P.2d 533, 535 (Wyo.1991). The movant bears the initial burden of establishing a prima facie case for summary judgment. If the movant carries his burden, the party who is opposing the motion for summary judgment must present specific facts to demonstrate that a genuine issue of material fact exists. Weber v. McCoy, 950 P.2d 548, 551 (Wyo.1997). This court evaluates the propriety of a summary judgment by employing the same standards and by using the same materials as the district court employed and used. We examine the record in the light most favorable to the party who opposed the motion for summary judgment, and we give that party all the favorable inferences that may fairly be drawn from the record. We accord no deference to the district court's decisions on issues of law. Marchant v. Cook, 967 P.2d 551, 554 (Wyo.1998).

BREACH OF CONTRACT CLAIM

[¶ 10] It is the position of Wyoming Beverage that any contract which existed with Metz was terminable at will by either party. Wyoming Beverage asserts that any such contract was unenforceable or limited because of the statute of frauds and the fact that the agreement had no specific duration. Metz, however, contends there was a valid enforceable contract that was only terminable for cause and that Wyoming Beverage breached its agreement with Metz by simply terminating the contract without cause.

A. The Contract

[T 11] Wyoming Beverage has, at times in the record, contested the existence of a contract with Metz. Wyoming Beverage has instead referred to an arrangement or relationship with Metz. However, there is no doubt that an agreement of some nature existed between the parties from 1967 to 1997. The agreement was acknowledged in various pieces of correspondence sent by Mr. Clay to Metz. For example, in a letter to Diana Metz dated December 6, 1998, Mr. Clay stated:

If you fail to meet these obligations by the dates indicated, the oral agreement between Wyoming Beverages and Metz Beverages will be terminated, effective April 15, 1994.

(Emphasis added.) Similarly, on April 25, 1994, Mr. Clay wrote to Dorothy Metz: "As I mentioned to you then, we have no desire to cancel our oral agreement" (emphasis added). We, therefore, conclude what the parties have essentially conceded that there was a contract between Metz and Wyoming Beverage.

B. The Statute of Frauds

[112] Wyoming Beverage next contends that the agreement between the parties was void because it violated the statute of frauds. The parties acknowledge that the agreement in question was one for the sale of goods and, therefore, the Wyoming statutes incorporating the Uniform Commercial Code at §§ 34.1-2-101 et seq. apply.

[¶183] The statute of frauds relating to the Uniform Commercial Code is found at *1056 Wyo.

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Bluebook (online)
2002 WY 21, 39 P.3d 1051, 46 U.C.C. Rep. Serv. 2d (West) 955, 2002 Wyo. LEXIS 20, 2002 WL 188362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metz-beverage-co-v-wyoming-beverages-inc-wyo-2002.