Midwest Great Dane Trailers, Inc. v. Great Dane Ltd. Partnership

977 F. Supp. 1386, 1997 U.S. Dist. LEXIS 14602, 1997 WL 586726
CourtDistrict Court, D. Minnesota
DecidedSeptember 19, 1997
Docket0:97-cv-01111
StatusPublished
Cited by11 cases

This text of 977 F. Supp. 1386 (Midwest Great Dane Trailers, Inc. v. Great Dane Ltd. Partnership) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midwest Great Dane Trailers, Inc. v. Great Dane Ltd. Partnership, 977 F. Supp. 1386, 1997 U.S. Dist. LEXIS 14602, 1997 WL 586726 (mnd 1997).

Opinion

ORDER

ALSOP, Senior District Judge.

This matter is before the Court upon Great Dane Trailers’ (“Great Dane”) motion to dis *1388 miss for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Great Dane seeks dismissal of each of the four counts in Midwest Great Dane Trailers, Inc.’s (“Midwest”) Complaint on the grounds that the facts as alleged therein fail to state a claim on which relief may be granted. The Court will grant in part and deny in part-Great Dane’s motion.

BACKGROUND

Great Dane is a limited partnership which manufactures Great Dane Trailers, a brand of semi-trailer trucks which are sold nationwide by a network of dealers/distributors. Midwest is a Minnesota corporation which has been an authorized dealer of Great Dane Trailers since 1975. Great Dane and Midwest have entered into successive annual dealership agreements since that time, the most recent of which was effective as of January 1, 1997. The relevant portions of that contract are as follows. Clause One of the Agreement is titled “Area of Responsibility” and provides that Midwest is “primarily responsible for the sale of Great Dane products in the territory shown on Exhibit 1.” Midwest’s Area of Responsibility, according to that Exhibit, consists of the entire states of North Dakota and Minnesota, as well as a portion of Wisconsin. Clause One further states, “Distributor does not have the exclusive right to sell Great Dane products within such territory nor is Distributor limited to sales within such territory.” Clause Two contains a minimum sales responsibility for Midwest within its Area of Responsibility, and subsection (c) of Clause Twenty-Two lists failure to meet this sales responsibility as a potential ground for termination of the agreement. Clause Four mandates that Midwest will maintain an adequate inventory of parts for, and provide proper service to, its customers as well as all Great Dane Trailer owners within the Area of Responsibility. Likewise, Clause Twenty of the Agreement requires that Midwest handle complaints from all owners of Great Dane Trailers so to maintain the good will of both the distributor and the manufacturer, and requires that Midwest maintain an adequate service facility for the provision of warranty and repair services. Clause Thirty is an integration clause. .

'■ According to the Complaint, on March 19, 1997, Great Dane advised Midwest that it had appointed Crossroads Trailers, Inc. as an authorized dealer of Great Dane products for a portion of Minnesota. Count One of the Complaint alleges that such an action violates the Minnesota Heavy and Utility Equipment Manufacturer and Dealers Act (“MHUEM-DA”), Minn.Stat. § 325E.068, et seq., which prohibits acts that “substantially change the competitive circumstances of- a dealership agreement” without good cause, Minn.Stat. § 325E.0681, subd. 1. Count Two of the Complaint alleges that Great Dane’s appointment of a new dealer within Midwest’s Area of Responsibility amounted to a intentional and wrongful interference with Midwest’s current and prospective business relationships. Count Three of the Complaint alleges that Great Dane’s appointment of Crossroads effectuated a breach of its dealership contract with Midwest. Midwest alleges that the contract either unambiguously grants it a right to sell in its Area of Responsibility free of the physical presence of other dealerships, or, at the very least, is ambiguous as to Great Dane’s right to appoint a new dealer in Midwest’s Area of Responsibility. Midwest contends that to the extent the agreement may be ambiguous as such, the other provisions of the contract, as well as extrinsic oral and written representations by Great Dane suggest that both parties did not intend for Great Dane to have unfettered discretion in the appointment of new dealers within the Area of Responsibility. Count Four of the Complaint alleges, in the alternative, that extra-contractual promises by Great Dane not to appoint new dealers in the area without notice and opportunity for cure by Midwest, induced justifiable reliance by Midwest in its business decisions. Breach of those promises, Midwest contends, caused it damages.

Great Dane responds that the agreement is unambiguous as to Great Dane’s uninhibited right to appoint new dealers within Midwest’s Area of Responsibility. As such, Great Dane contends that, (1) Midwest has failed to state a claim of breach of contract *1389 since Great Dane was acting pursuant to its rights under the contract; (2) that the agreement between Great Dane and Midwest was fully integrated, that all extrinsic agreements were merged into the final document and that therefore the only promises to which Great Dane is bound are found within the four comers of the dealership agreement; (3) that by acting pursuant to its contractual rights it could not have “wrongfully or intentionally” interfered with Midwest’s third-party contractual relationships, that a party cannot tortiously interfere with what is essentially its own contract, and that Midwest is unable to identify any specific contractual relationships with which Great Dane interfered; (4) that by acting pursuant to its rights under the agreement, it could not have caused a “substantial change in the competitive circumstances of the dealership agreement” and therefore could not have violated the MHUEMDA. For these reasons, Great Dañé asserts, each of Midwest’s four alleged causes of action should be dismissed.

STANDARD OF REVIEW

In evaluating a motion to dismiss for failure to state a claim, courts must accept as true the factual allegations contained in the complaint and all reasonable inferences must be drawn in favor of the nonmoving party. See Scheuer v. Rhodes, 416 U.S. 232, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). The Supreme Court has held that a court may dismiss a complaint under Rule 12(b)(6) “only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations.” Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 2232, 81 L.Ed.2d 59 (1984) cited in Alexander v. Peffer, 993 F.2d 1348, 1349 (8th Cir.1993). Motions to dismiss are granted when upon the face of the complaint there is an “insuperable bar to relief.” Frey v. City of Herculaneum, 44 F.3d 667, 671 (8th Cir. 1995).

DISCUSSION

Defendant asserted in its memoranda of law, without objection by Plaintiff, that Georgia law would apply to the breach of contract claim in accordance with the parties’ contractual agreement. Minnesota law will apply to the other three claims.

As an initial matter the Court must determine whether or not the language of the agreement is ambiguous on the issue of Great Dane’s authority to appoint a second distributor within Midwest’s Area of Responsibility.

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Bluebook (online)
977 F. Supp. 1386, 1997 U.S. Dist. LEXIS 14602, 1997 WL 586726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwest-great-dane-trailers-inc-v-great-dane-ltd-partnership-mnd-1997.