O.E. Meyer Company v. Boc Group, Inc., Unpublished Decision (3-3-2000)

CourtOhio Court of Appeals
DecidedMarch 3, 2000
DocketNo. 87-CV-419. Appeals No. E-99-002.
StatusUnpublished

This text of O.E. Meyer Company v. Boc Group, Inc., Unpublished Decision (3-3-2000) (O.E. Meyer Company v. Boc Group, Inc., Unpublished Decision (3-3-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O.E. Meyer Company v. Boc Group, Inc., Unpublished Decision (3-3-2000), (Ohio Ct. App. 2000).

Opinion

[EDITOR'S NOTE: This case is unpublished as indicated by the issuing court.]

DECISION AND JUDGMENT ENTRY
This case is before the court on appeal from several judgments of the Erie County Court of Common Pleas. Appellants/cross-appellees, The BOC Group, Inc., d.b.a. Ohmeda, et al., ("BOC"), appeal the trial court's denial of BOC's motions for: (1) partial summary judgment; (2) a directed verdict on appellee/cross-appellant's claims of promissory estoppel and breach of contract; (3) a judgment notwithstanding the verdict; and (4) new trial and remittitur. BOC also appeals from the final judgment awarding $2.9 million to appellee/cross-appellant, O.E. Meyer Company, formerly known as O.E. Meyer Son ("Meyer"). Meyer appeals the trial court's grant of a directed verdict on their claims of fraud and fraudulent concealment and the denial of their motions for prejudgment interest and merger of interest and damages.

BOC's first assignment of error reads as follows:

"THE TRIAL COURT ERRED IN DENYING BOC'S MOTIONS FOR PARTIAL SUMMARY JUDGMENT, DIRECTED VERDICT AND JUDGMENT NOTWITHSTANDING THE VERDICT ON THE CLAIMS FOR PROMISSORY ESTOPPEL AND BREACH OF CONTRACT."

Upon a thorough review of the record of this case, we must conclude that the trial court erred in failing to grant BOC's motion for summary judgment on Meyer's promissory estoppel claim and the breach of the oximeter contract. However, because we have the same opinion after reviewing all of the evidence offered at trial, we shall address BOC's first assignment of error as it relates to the motion for a directed verdict and for a judgment notwithstanding the verdict.

The standard to be applied in considering a motion for a directed verdict is the same standard to be applied in considering a motion for judgment notwithstanding the verdict. See Gladon v.Greater Cleveland Regional Transit Auth. (1996), 75 Ohio St.3d 312,318-319, citing Posin v. A.B.C. Motor Court Hotel, Inc. (1976), 45 Ohio St.2d 271, 275.

Civ.R. 50(A)(4) provides:

"* * * When a motion for a directed verdict has been properly made, and the trial court, after construing the evidence most strongly in favor of the party against whom the motion is directed, finds that upon any determinative issue reasonable minds could come to but one conclusion upon the evidence submitted and that conclusion is adverse to such party, the court shall sustain the motion and direct a verdict for the moving party as to that issue."

If there is substantial competent evidence to support the party against whom the motion is made, upon which evidence reasonable minds might reach different conclusions, the motion must be denied. Wagner v. Roche Lab. (1996), 77 Ohio St.3d 116, 119-120. We cannot weigh the evidence or judge the credibility of the witnesses. Sanek v. Duracote Corp. (1989), 43 Ohio St.3d 169,172.

The following dispositive facts are taken from the pleadings, testimony offered at the trial of this matter and numerous exhibits admitted into evidence.

BOC is a large international corporation that engages in the manufacture and sale of industrial gases and health care products and services. In addition to direct sales, BOC or one of its divisions entered into contracts with distributors for the sale of medical products in the United States. As of 1984, BOC had contracts with an estimated five hundred to six hundred distributors in this country.

During the time period, approximately 1980 to 1987, relevant to this case, Ohmeda, an unincorporated division of BOC, was involved with the sale and service of medical products in the state of Ohio. Meyer, an Ohio corporation, had a long business relationship with BOC. This relationship was evidenced by a series of contracts between Meyer and Ohmeda. In 1980, Meyer and Ohmeda executed a contract that permitted Meyer to distribute,i.e., sell, specified BOC medical products in northern Ohio. The contract, captioned "AUTHORIZED OHIO DEALER AGREEMENT," contains the following pertinent provisions:

"1. Ohio [Ohmeda] hereby appoints Dealer [Meyer] as a non-exclusive distributor in Dealer's primary area of marketing responsibility * * *.

"* * *

"5. The term of this agreement shall commence on 11-1-80 and subject to its earlier termination under this Agreement will continue in effect for a period of one (1) year and thereafter from year to year unless terminated earlier under this Agreement.

"14. (a) Dealer or Ohio may terminate this Agreement in its entirety, with or without cause, upon giving to the other at least thirty (30) days prior written notice.

"16. The provisions of this Agreement, including the attached Schedules, constitute the entire agreement between Ohio and the Dealer relating to matters covered by the agreement.

"19. This Agreement shall become valid on being signed by Ohio's Manager of Dealer Sales and by a duly authorized officer of the Dealer. No modification or waiver of any of its provisions shall be binding upon Ohio unless set forth in writing and accepted by Ohio's Manager of Dealer Sales."

In the early 1980's, advances in technology and an increasing need for technical services affected the manner in which BOC's medical products division marketed its goods. In 1984, the Ohmeda division actually lost money. At that point, either in 1983 or 1984, BOC hired a consulting firm to conduct a study of its entire operation in order to determine the best method in which to improve profitability. One of the recommendations made by the firm was to eliminate distributors and focus on direct sales and service. Consequently, in November 1984, BOC terminated, without cause, the contracts of approximately four hundred to five hundred distributors in the United States. Meyer was one of the ninety-seven distributors that was retained.

On September 27, 1985, BOC terminated all but six of its distributors in the United States. Meyer remained a distributor. Furthermore, a contract to sell the BOC oximeter line was offered to Meyer. In addition, Meyer's territory was extended to all of Ohio, except Cincinnati, and they were allowed to sell the BOC 8000 anesthesia machine. However, the recommendation of the consulting firm was that Meyer be classified as a "short-term" distributor for less than one year pending the development of an effective direct sales and service force in the state of Ohio. Paul A. Baumgart, Manager of National Account Development for Ohmeda, testified that BOC decided to retain Meyer as a distributor and re-evaluate the situation in Ohio at a later time.

During 1984 and 1985, Meyer sought assurances from BOC of a "long term commitment" to their business relationship. Baumgart admitted that BOC knew the offering of the oximeter line, the new anesthesia machine and the expansion of its territory would be viewed by Meyer as signs of commitment. According to David G. Belden, General Manager of Meyer's medical division, he was assured, through words and conduct, that Ohmeda was committed to Meyer.

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Bluebook (online)
O.E. Meyer Company v. Boc Group, Inc., Unpublished Decision (3-3-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/oe-meyer-company-v-boc-group-inc-unpublished-decision-3-3-2000-ohioctapp-2000.