Nieves Domenech v. Dymax Corp.

952 F. Supp. 57, 1996 U.S. Dist. LEXIS 19920, 1996 WL 764080
CourtDistrict Court, D. Puerto Rico
DecidedDecember 22, 1996
DocketCivil 95-2226 (HL)
StatusPublished
Cited by33 cases

This text of 952 F. Supp. 57 (Nieves Domenech v. Dymax Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nieves Domenech v. Dymax Corp., 952 F. Supp. 57, 1996 U.S. Dist. LEXIS 19920, 1996 WL 764080 (prd 1996).

Opinion

OPINION AND ORDER

LAFFITTE, District Judge.

Before the Court is Defendant Dymax Corporation’s motion for partial summary judgment 1 in this action for damages under Puerto Rico’s Sales Representatives Act, *60 commonly known as “Law 21.” 2 Dymax is a corporation engaged in the manufacture of industrial products, including “UV adhesives” which are used in the manufacture of computers and the assembly of medical devices. Plaintiffs are Sixto Nieves Domenech (“Nieves”), his wife Rosa Quiriones Cecilio (“Quiñones”), and. their conjugal partnership. Plaintiffs are also bringing claims for breach of contract and for damages pursuant to the Puerto Rico Civil Code’s Article 1802 on negligence. 3 This Court’s jurisdiction is based on diversity of the parties. 4

The Court reviews the record in the light most favorable to Plaintiffs and draws all reasonable inferences in their favor. , See LeBlanc v. Great American Ins. Co., 6 F.3d 836, 841 (1st Cir.1993). In their complaint, Plaintiffs allege that on August 15, 1986, Nieves — under ERO Technology — entered into a sales agreement (“the Agreement”) with Dymax; that the Agreement appointed Nieves as Dymax’s sole agent for certain of the company’s products in Puerto Rico; that starting in 1986 Nieves visited prospective clients to promote Dymax’s products; that at the end of 1988, Nieves, now doing business as “Engineering Consulting Group,” continued to be the Puerto Rico sales agent for Dymax; that Nieves’ efforts to promote Dy-max’s products had developed large sales volumes by 1995; and that Dymax terminated the Agreement in 1995 without just cause, in violation of Law 21. 5

After Dymax filed its motion for partial summary judgment, Plaintiffs filed an opposition on July 12, 1996. 6 In their opposition — which was filed five months after the Court’s deadline 7 for amending the complaint — Plaintiffs claimed that the complaint was mistaken. In the complaint, Plaintiffs had alleged that in 1988 Nieves, now doing business as Engineering Consulting Group, continued to be a sales agent for Dymax. In their opposition, Plaintiffs claimed that the correct date is 1991. 8 They also claimed that the Agreement of August 15, 1986, was between Dymax and ERO Technology. Plaintiffs further claimed in their opposition that at an unspecified date between 1986 and 1991, ERO Telecom & Industrial Supplies, Inc. became Dymax’s exclusive sales agent under. the Agreement. 9 Plaintiffs also claimed in their opposition that at the end of 1991, Nieves became Dymax’s exclusive Puerto Rico sales agent under the Agreement “under the same terms as the Agreement dating back to 1986 between Dymax and ERO Technology.” 10 Nieves was president and manager of ERO Technology. 11 He was also, along with three other individuals, a shareholder of ERO Technology. 12 He was also the company manager of ERO Telecom and a shareholder with an unspecified share in the corporation. 13 According to Plaintiffs, then, the only difference in the Agreement since it was first entered into in 1986 is the identity of the Puerto Rico sales agent.

In its motion for partial summary judgment, Dymax argues that Law 21 does not cover the Agreement; that therefore Plaintiffs do not have a claim under that statute; and that accordingly, Plaintiffs’ claim under Article 1802 must also fail. Plaintiffs have opposed the motion. For the reasons set forth below, the Court grants Dymax’s motion.

DISCUSSION

I. The Law 21 claim

Summary judgment is appropriate if “there is no genuine issue as to any material *61 fact and ... the moving party is entitled to a judgment as a matter of law.” See Fed.R.Civ.P. 56(c). The party moving for summary judgment bears the initial responsibility of demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). Once the moving party has satisfied this requirement, the non-moving party has the burden of presenting' any facts that demonstrate a genuine issue for trial. Fed.R.Civ.P. 56(e); LeBlanc, 6 F.3d at 841. The nonmovant must do more than show “some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986). An issue is genuine when, based on the evidence, a reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). “The mere existence of a scintilla of evidence in support of the plaintiffs position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Id. at 252, 106 S.Ct. at 2512.

Plaintiffs are bringing a claim under Puerto Rico’s Law 21. This statute prohibits a principal from terminating its agreement with a sales representative without just cause. P.R.Laws Ann. tit. 10, § 279a. Law 21 took effect on December 5, 1990, and it does not apply to agreements that were entered into prior to that date. See 1990 Acts and Resolutions of Puerto Rico, December 5, 1990, No. 21, sec. 10, at 1501; Tavarez v. Champion Products, Inc., 903 F.Supp. 268, 272 (D.P.R.1995). In their complaint, Plaintiffs allege that on August 15,1986, Nieves— under ERO Technology — entered into the Agreement with Dymax; that the Agreement made Nieves the sole agent of Dymax in Puerto Rico; and that starting in 1986 Nieves visited prospective clients to promote Dymax’s products. 14 A litigant’s assertions of fact in a pleading constitutes a judicial admission by which the party is normally bound throughout the proceeding. Schott Motorcycle Supply v. Am. Honda Motor Co., 976 F.2d 58

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Bluebook (online)
952 F. Supp. 57, 1996 U.S. Dist. LEXIS 19920, 1996 WL 764080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nieves-domenech-v-dymax-corp-prd-1996.