New England Surfaces v. E.I. Du Pont De Nemours & Co.

517 F. Supp. 2d 466, 2007 U.S. Dist. LEXIS 68490, 2007 WL 2711612
CourtDistrict Court, D. Maine
DecidedSeptember 14, 2007
Docket2:06-cr-00089
StatusPublished
Cited by2 cases

This text of 517 F. Supp. 2d 466 (New England Surfaces v. E.I. Du Pont De Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Surfaces v. E.I. Du Pont De Nemours & Co., 517 F. Supp. 2d 466, 2007 U.S. Dist. LEXIS 68490, 2007 WL 2711612 (D. Me. 2007).

Opinion

ORDER ON MOTIONS FOR SUMMARY JUDGMENT [REDACTED PUBLIC VERSION] 1

GEORGE Z. SINGAL, Chief Judge.

This case arises out of the termination of a business relationship between Defendant E.I. Du Pont de Nemours and Company (“DuPont”) and Plaintiff New England Surfaces (“NES”). 2 NES was the New England distributor of DuPont manufactured products for over thirty-five years. DuPont terminated the business relationship in April of 2006, and Defendant Park-site, Inc. (“Parksite”), a sales and distribution company based in Illinois, became the Sales Affiliate for DuPont in the New England area.

On August 29, 2006, NES filed a second amended complaint asserting nineteen claims against DuPont and nine claims against Parksite. (Docket # 65.) Specifically, the second amended complaint asserts causes of action against DuPont for violation of the Connecticut Franchise Act (Count I), Connecticut Unfair Trade Practices Act (Count II), Massachusetts Unfair Trade Practices Act (Count III), New Hampshire Consumer Protection Act (Count IV), Vermont Unfair Trade Practices Act (Count V), fraud and misrepresentation (Count VI), negligent misrepresentation (Count VII), breach of fiduciary duty (Count VIII), breach of fiduciary duty (Count IX), aiding and abetting tortious conduct (Count X), promissory estoppel (Count XI), breach of the covenant of good faith and fair dealing (Count XII), tortious interference with contractual rights and prospective economic interests (Count XIII), breach of contract (Count XIV), unreasonable termination of distribution agreements (Count XV), unconscionability (Count XVI), misappropriation of confidential information (Count XVII), violation of Maine Antitrust Statute (Count XVIII) and violation of Maine Unfair Sales Act (Count XIX).

*470 The second amended complaint asserts causes of action against Parksite for violation of the Connecticut Unfair Trade Practices Act (Count II), Massachusetts Unfair Trade Practices Act (Count III), New Hampshire Consumer Protection Act (Count IV), Vermont Unfair Trade Practices Act (Count V), breach of fiduciary duty (Count IX), aiding and abetting tortious conduct (Count X), tortious interference with contractual rights and prospective economic interests (Count XIII), misappropriation of confidential information (Count XVII) and violation of Maine Antitrust Statute (Count XVIII). On October 20, 2006, the Court issued an Order on Motion to Dismiss, dismissing Counts II, III, IV, V and XVI of the second amended complaint. (Docket # 71.)

Before the Court are Defendant DuPont’s Motion for Summary Judgment with Incorporated Memorandum of Law (Docket # 109) and Defendant Parksite’s Redacted Motion for Summary Judgment and Incorporated Memorandum of Law (Docket # 112). 3 Through these Motions, Defendants DuPont and Parksite seek summary judgment on all remaining counts alleged by NES. 4 After reviewing the parties’ submissions, the Court GRANTS IN PART and DENIES IN PART the Motions.

I. BACKGROUND

A. DuPont

DuPont manufactures the solid surfaces products Corian®, Zodiaq® and SimplicityTM (“surface products”), which are used in the fabrication of countertops and a variety of other items used in kitchens, baths and other installations. (Defendant E.I DuPont de Nemours and Company’s Statement of Undisputed Material Facts (“DuPont’s SMF”) (Docket #110) ¶1.) For more than thirty years, DuPont has contracted with distributors, and more recently, a Regional Sales Office in New England, to market and distribute its products within the United States. (Id.) Distributors, in turn, sell the products to fabricators and retailers. 5 (Id.) Fabricators shape and make the DuPont products into countertops and other products. (Id.) Fabricators then sell finished products to retailers, builders, business owners and individual customers. (Id.) Retailers purchase products and resell them to consumers and others. (Id.)

DuPont requires that all fabricators who create products using DuPont products enter into a standard form DuPont Certified Fabricator/Installer Agreement with DuPont. (DuPont’s SMF ¶ 2.) The Fabricator Agreements require that the fabricators register each residential Corian® installation with DuPont by completing the warranty registration cards and returning them to the distributor for processing. (DuPont’s SMF ¶ 3; Plaintiffs SMF ¶3.) NES choose, trained and qualified the New England fabricators, who were NES customers that construct and install DuPont surface products. (Plaintiff New *471 England Surfaces d/b/a Dion Distributors, Inc.’s Response to Defendant DuPont’s Statement of Material Facts and Statements of Additional Facts (“Plaintiffs SMF”) (Docket # 176) ¶ 2.)

DuPont requires that retailers of DuPont products enter into a standard form DuPont Authorized Retailer Agreement. (DuPont’s SMF ¶ 4.) In the case of Corian®, the agreement provides that each retailer is eligible to be listed on the DuPont Corian® website retailer locator and other leading remodeling websites authorized by DuPont. (Id.) The DuPont retailer agreements require that retailers work with Certified Fabricators/Installers to enter warranty card information into the DuPont website www.warrantycards.com. (Id. ¶ 5.)

Since at least the early 1980s, DuPont has maintained several databases, including the above website, which contain information about Certified Fabricators/Installers and Authorized Retailers in each Geographical Marketing Area (“GMA”) in which DuPont’s products are sold. (Id. ¶ 6.) The DuPont databases contain the names, addresses and other information about retailers and fabricators. (Id. ¶ 7.) The information in the databases has been submitted to DuPont by distributors, fabricators, retailers, consumers, from leads developed by DuPont and others at trade shows, from consumer visits to public DuPont websites and from sales information reported by fabricators and distributors. (Id.) Distributors have access to certain DuPont databases, including databases known as corianenterprise.com and sales-force.com. (DuPont’s SMF ¶ 8.) The databases to which distributors have access, however, do not contain information regarding other distributor’s customer lists, and internal DuPont websites offer limited access to the public and distributors. (Plaintiffs SMF ¶¶ 6, 8). Authorized retailers in the New England GMA with which NES did business were known to the public through these websites. (Id. ¶ 10; DuPont’s SMF ¶ 10.) Nonetheless, some of the data collected by DuPont and maintained in the DuPont databases was available to the public on its website. (DuPont’s SMF ¶ 9.) The information available to the public did not include sales data such as sales volume or rankings of distributors. (Plaintiffs SMF ¶ 9.)

B. New England Surfaces

New England Surfaces, based in Lewiston, Maine, was an authorized distributor of DuPont solid surface products for over thirty-five years.

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Related

Combined Energies v. CCI, INC.
628 F. Supp. 2d 226 (D. Maine, 2009)
New England Surfaces v. E.I. Dupont De Nemours & Co.
558 F. Supp. 2d 116 (D. Maine, 2008)

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Bluebook (online)
517 F. Supp. 2d 466, 2007 U.S. Dist. LEXIS 68490, 2007 WL 2711612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-surfaces-v-ei-du-pont-de-nemours-co-med-2007.