Newton Tractor Sales, Inc. v. Kubota Tractor Corporation

889 N.E.2d 1213, 382 Ill. App. 3d 1176, 321 Ill. Dec. 653, 2008 Ill. App. LEXIS 546
CourtAppellate Court of Illinois
DecidedJune 5, 2008
Docket5-06-0087 Rel
StatusPublished
Cited by2 cases

This text of 889 N.E.2d 1213 (Newton Tractor Sales, Inc. v. Kubota Tractor Corporation) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton Tractor Sales, Inc. v. Kubota Tractor Corporation, 889 N.E.2d 1213, 382 Ill. App. 3d 1176, 321 Ill. Dec. 653, 2008 Ill. App. LEXIS 546 (Ill. Ct. App. 2008).

Opinion

JUSTICE WELCH

delivered the opinion of the court:

The plaintiff, Newton Tractor Sales, Inc., brought an action to recover damages against the defendants, Kubota Tractor Corp. and Michael Jacobsen, based, inter alia, on a theory of promissory estoppel. The circuit court of Fayette County entered an order granting a summary judgment in favor of the defendants. The defendants then filed a motion seeking costs for the court appearance fee, deposition subpoena fees, and deposition transcription fees. The circuit court granted the motion for the court appearance fees and denied the motion for the deposition subpoena fees and deposition transcription fees. On appeal, the plaintiff asks this court to reverse the order granting the summary judgment in favor of the defendants, and on cross-appeal, the defendants ask this court to reverse the order denying the motion requesting deposition subpoena fees and deposition transcription fees. For the following reasons, we affirm the judgments entered by the circuit court of Fayette County.

We first discuss the plaintiffs argument on appeal. The facts are as follows. Kubota Tractor Corp. (Kubota) is in the business of selling tractors and equipment through dealers. Vandalia Tractor & Equipment, Inc. (Vandalia), was the local authorized dealer of Kubota products. However, Newton Tractor Sales, Inc. (Newton), and Vandalia began negotiations for Newton to purchase the Vandalia dealership. In April 2003, Newton submitted a dealership application to become a local authorized dealer of Kubota products to Kubota’s regional sales manager, Michael Jacobsen (Jacobsen). On June 19, 2003, a revised application was submitted. Jacobsen forwarded the application to Kubota’s division office in Columbus, Ohio, for review.

On July 10, 2003, Newton entered into an asset purchase agreement with Vandalia to purchase the assets of Vandalia’s dealership. The agreement was contingent upon Newton becoming a local authorized dealer of Kubota products and provided that Newton was permitted to cancel the agreement in the event that Kubota rejected Newton’s dealership application. At that time, Newton’s dealership application had not been approved.

On July 28, 2003, Jacobson recommended the approval of Newton’s dealership application to Kubota in writing. Around August 12, 2003, Kubota’s division office in Columbus, Ohio, approved the application and recommended the final approval by Kubota’s corporate office in Torrance, California. On August 29, 2003, representatives of Vandalia terminated the authorized dealership agreement with Kubota.

In September 2003, Kubota’s corporate office in Torrance, California, denied Newton’s dealership application. After learning that Newton’s dealership application had been rejected, Jacobsen contacted Newton and requested additional information to forward to Kubota. After reviewing this additional information, Kubota again denied Newton’s application.

On July 27, 2004, the plaintiff filed a complaint against the defendants based, inter alia, on a claim of promissory estoppel. The complaint alleged that on or about July 25, 2003, Jacobsen, as an agent for Kubota, represented to Newton that Newton would be the local authorized dealer of Kubota products and that Vandalia had to terminate its authorized dealership agreement with Kubota before Newton could become a local authorized dealer of Kubota. In reliance on the promise of Jacobsen, Newton directed the representatives of Vandalia to terminate Vandalia’s right to sell Kubota equipment and Vandalia terminated its authorized dealership agreement with Kubota. The complaint further alleged that in breach of its July 25, 2003, promise, during the last weeks of September 2003, Kubota indicated that Newton would not be a local authorized dealer of Kubota products and removed its products from the possession of Newton. As a result, Newton suffered damages including unpaid warranty work that had been performed on behalf of Kubota.

On September 29, 2005, the defendants filed a motion for a summary judgment. The defendants argued that a summary judgment should be awarded in their favor because promissory estoppel is not a proper cause of action and is available only as an affirmative defense in Illinois. On January 30, 2006, the trial court entered a written order granting a summary judgment in favor of the defendants. In its order, the trial court noted that this court has held in DeWitt v. Fleming, 357 Ill. App. 3d 571 (2005), and in ESM Development Corp. v. Dawson, 342 Ill. App. 3d 688 (2003), that promissory estoppel is not a theory under which a cause of action seeking monetary relief can be asserted and that “[i]t is the trial court’s obligation to follow existing appellate authority from the same district in which the trial court sits.”

On February 14, 2006, the plaintiff filed a notice of appeal arguing that the trial court erred in granting the summary judgment in favor of the defendants. A summary judgment is appropriate where the pleadings, affidavits, depositions, admissions, and exhibits on file, when viewed in the light most favorable to the nonmoving party, reveal that there is no genuine issue on any material fact and that the moving party is entitled to a judgment as a matter of law. Busch v. Graphic Color Corp., 169 Ill. 2d 325, 333 (1996). Although a summary judgment is an efficient and useful aid in the expeditious disposition of a lawsuit, a summary judgment is a drastic remedy and should only be granted when the moving party’s right to a judgment is clear and free from doubt. Outboard Marine Corp. v. Liberty Mutual Insurance Co., 154 Ill. 2d 90, 102 (1992). A summary judgment is proper where the nonmoving party fails to establish an element of the cause of action. Pyne v. Witmer, 129 Ill. 2d 351, 358 (1989). We review de novo the trial court’s award of a summary judgment. Chatham Foot Specialists, P.C. v. Health Care Service Corp., 216 Ill. 2d 366, 376 (2005).

The plaintiff contends that damages can be recovered from the defendants under a theory of promissory estoppel and moreover that allowing recovery is supported by public policy and is necessary to prevent improper business practices. In support of the plaintiff’s argument, the plaintiff urges this court to depart from its recent holding in DeWitt v. Fleming, 357 Ill. App. 3d 571 (2005), and to instead follow our dissenting colleague’s opinion in DeWitt that promissory estoppel can be used as a viable cause of action in Illinois. In response, the defendants argue that we should not depart from our recent ruling.

In DeWitt, the plaintiffs filed a complaint to recover the costs of a survey performed on a parcel of land, which the defendant had orally promised to sell to the plaintiffs but subsequently refused to sell. DeWitt, 357 Ill. App. 3d 571. On appeal, the defendant argued that the trial court erred in applying the doctrine of promissory estoppel because the doctrine of promissory estoppel cannot be used to bar the application of the statute of frauds. DeWitt, 357 Ill. App. 3d 571. In DeWitt, we concluded that “in Illinois promissory estoppel is available only as a defense (i.e., as a shield), not as a cause of action (i.e., as a sword).” DeWitt, 357 Ill. App. 3d at 573.

We reinforced our position by noting that we had held the same in our previous ruling in ESM Development Corp. v. Dawson, 342 Ill. App.

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Related

Newton Tractor Sales, Inc. v. Kubota Tractor Corp.
906 N.E.2d 520 (Illinois Supreme Court, 2009)
Newton Tractor Sales v. Kubota Tractor
889 N.E.2d 1213 (Appellate Court of Illinois, 2008)

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Bluebook (online)
889 N.E.2d 1213, 382 Ill. App. 3d 1176, 321 Ill. Dec. 653, 2008 Ill. App. LEXIS 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-tractor-sales-inc-v-kubota-tractor-corporation-illappct-2008.