Mt. Everest Ski Shops, Inc. v. Nordica USA, Inc.

736 F. Supp. 523, 1989 U.S. Dist. LEXIS 16912, 1989 WL 202147
CourtDistrict Court, D. Vermont
DecidedMarch 22, 1989
DocketCiv. No. 87-106
StatusPublished
Cited by6 cases

This text of 736 F. Supp. 523 (Mt. Everest Ski Shops, Inc. v. Nordica USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mt. Everest Ski Shops, Inc. v. Nordica USA, Inc., 736 F. Supp. 523, 1989 U.S. Dist. LEXIS 16912, 1989 WL 202147 (D. Vt. 1989).

Opinion

MEMORANDUM AND INTERLOCUTORY ORDER

HOLDEN, Senior District Judge.

The plaintiff Mt. Everest Ski Shops, Inc., filed its complaint against Nórdica USA, Inc., and The Ski Barn, Inc., on March 9, 1987, in the District of New Jersey. The complaint comprised ten counts, sounding predominantly in anti-trust under the laws of the United States and of New Jersey. Other pendent claims included tortious interference with contractual rights and with prospective business advantage, consumer fraud, breach of contract, and violation of the New Jersey Franchise Practices Act. Judge Bissell transferred the action to the District of Vermont pursuant to 28 U.S.C. § 1404(a). In the course of subsequent proceedings, the court has denied or dismissed each count alleged in the plaintiff’s complaint.1

[525]*525The motion of defendant Nórdica USA for summary judgment of its counterclaim, and the cross-motion of plaintiff Mt. Everest Ski Shops for summary judgment to dismiss the counterclaim, remain for disposition. The defendant filed its motion on September 6, 1988; the plaintiff filed its cross-motion on September 23, 1988. Each party has opposed the motion of the other, and each has submitted, in accordance with local rule 5, a supporting statement of material facts concerning which no genuine issue to be tried exists.

Jurisdiction of the Defendant’s Counterclaim

The court’s jurisdiction was originally based upon 28 U.S.C. § 1331 and the doctrine of pendent jurisdiction, see United Mine Workers v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966). After dismissal of the sole federal claim under 15 U.S.C. § 1, the court derived its jurisdiction from 28 U.S.C. § 1332: Mt. Everest Ski Shops is incorporated under the laws of New Jersey and has its principal place of business there. Nórdica USA is incorporated under the laws of Delaware and has its principal place of business in Vermont. The amount in controversy exceeded $10,-000.2

A court retains ancillary jurisdiction over compulsory counterclaims after all other claims for relief have been adjudicated. Baker v. Gold Seal Liquors, Inc., 417 U.S. 467, 469 n. 1, 94 S.Ct. 2504, 2506 n. 1, 41 L.Ed.2d 243 (1974) (dictum); Harris v. Steinem, 571 F.2d 119, 121-22 (2d Cir. 1978). Federal jurisdictional requirements must be satisfied independently before a court may proceed to adjudge a permissive counterclaim. Id. at 122.

A counterclaim which depends upon the judgment in the main action itself is not a compulsory counterclaim. Harris v. Steinem, 571 F.2d at 124-25. The plaintiff’s claims and the defendant’s counterclaim for the cost of defending against them do not arise out of the same “transaction or occurrence”. Fed.R.Civ.P. 13(a); Morgan v. Westinghouse Elec. Corp., 579 F.Supp. 867, 870 (N.D.Ga.1984); see Harris v. Steinem, 571 F.2d at 123-25. The counterclaim is permissive within the terms of rule 13; therefore the court must derive jurisdiction independently. Id. at 122.

The counterclaim, being founded upon a contract between the parties, arises under state law. See Erie R.R. v. Tompkins, 304 U.S. 64, 78, 58 S.Ct. 817, 822, 82 L.Ed. 1188 (1938). Therefore, the court’s jurisdiction must derive from 28 U.S.C. § 1332. Diversity of citizenship exists. Because the defendant claims that the attorney’s fees total $105,158.16, the requisite amount in controversy exists.3

Motion for Summary Judgment by Nórdica USA, Inc.

The plaintiff and the defendant formed several contracts between April 1, 1982, and March 31, 1987, under which the plaintiff purchased Nórdica ski boots from the defendant for sale or rental at fixed locations. Nórdica USA bases its counterclaim upon a provision common to all of the Authorized Dealer Agreements:

In the event Nórdica is the successful party on any claim by it, counterclaim by it, or defense by it in any action or proceeding brought by or against it with respect to the Authorized Dealer, Authorized Dealer shall pay, and hereby agrees to pay, in addition to all other sums which may be due, Nordiea’s reasonable attorney’s fees, costs and disbursements attributable to such claim, counterclaim or defense.4

[526]*526Suit would not lie with the defendant on any of the contracts formed before and terminating on March 31, 1985, for each of these contracts terminated on March 31 without automatic renewal.5 Two Agreements were effective between April 1, 1985 and March 31, 1986. One covered the plaintiffs store in Nanuet, New York, and permitted retail and rental of Nórdica ski boots. The other covered the plaintiffs store in Westwood, New Jersey, and permitted only rental of Nórdica ski boots. Both contracts for 1985-1986 renewed automatically, pursuant to paragraph 1(c), and were effective until termination on March 31, 1987.6 Both included the renumbered paragraph 18(c) cited in the counterclaim. The court infers that the defendant counterclaims upon both of these contracts.

The plaintiff filed its complaint on March 9, 1987. Any claims under paragraph 18(c) accrued with the filing of the complaint and the concurrent requirement of defense. Paragraph 18(c) was effective on March 9, 1987, because the contract did not terminate until March 31, 1987. Findings and Conclusions of Law at 6; see Adm’r of the Estate of Hubbard v. Billings, 35 Vt. 599 (1863).

Rule 56 of the Federal Rules of Civil Procedure provides:

[Summary] judgment ... shall be rendered ... if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the [supporting] affidavits [in the party’s favor], if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

Fed.R.Civ.P. 56(c). The movant must “show initially the absence of a genuine issue concerning any material fact”. Adickes v. S.H. Kress & Co., 398 U.S. 144, 159, 90 S.Ct. 1598, 1609, 26 L.Ed.2d 142 (1970). The court views the evidence “in the light most favorable to the opposing party”. Id. at 157, 90 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
736 F. Supp. 523, 1989 U.S. Dist. LEXIS 16912, 1989 WL 202147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mt-everest-ski-shops-inc-v-nordica-usa-inc-vtd-1989.