OKI Distributing, Inc. v. Amana Refrigeration, Inc.

850 F. Supp. 637, 1994 U.S. Dist. LEXIS 5399, 1994 WL 158822
CourtDistrict Court, S.D. Ohio
DecidedApril 12, 1994
DocketC-1-92-192
StatusPublished
Cited by4 cases

This text of 850 F. Supp. 637 (OKI Distributing, Inc. v. Amana Refrigeration, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
OKI Distributing, Inc. v. Amana Refrigeration, Inc., 850 F. Supp. 637, 1994 U.S. Dist. LEXIS 5399, 1994 WL 158822 (S.D. Ohio 1994).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

SPIEGEL, District Judge.

This matter is before the Court on the Defendant Amana’s Motion for Summary Judgement (doc. 21), the Defendant Raytheon’s Motion for Summary Judgement (doc. 22), the Plaintiffs Memorandum in Opposition (doc. 43), the Plaintiffs Memorandum in Opposition to the Defendant Raytheon’s Motion (doc. 42), and the Defendants’ Reply (doc. 44).

BACKGROUND

This action arises out of a now terminated distribution agreement between the Plaintiff, O.K.I. Distributing, Inc. (“OKI”), a wholesale appliance distributor, and the Defendant Amana Refrigeration, Inc., a manufacturer of kitchen and laundry appliances. Prior to the fall of 1991, Amana used both the “one-step” and the “two-step” process of distribution. Under the “one-step” process, the manufacturer sells its products directly to retail dealers often through regional, manufacturer-owned, facilities called “factory branches.” Under the “two-step” process, a manufacturer sells its -product to independent wholesale distributors who resell the product to retail dealers. The Plaintiff in this case was an independent wholesale distributor under the *640 “two-step” process. In the fall of 1991, Amana canceled all but three of its retail distributors in an effort to eliminate its use of the “two-step” process and use only the “one-step” process.

The parties do not dispute that they had a written contract (“contract,” “agreement” or “Distributor Agreement”) that provided, among other things, that either party could terminate the agreement at any time and without cause. The parties also agree that the Defendant Amana in fact terminated the agreement with the Plaintiff. There is also no dispute that Iowa law governs that outcome of this case.

What is contested is the Plaintiffs claim that the written contract was modified both orally and through a course of dealing and course of conduct. The Plaintiff alleges that the modification permitted termination of the agreement only for cause, and that the Plaintiffs termination without cause, although consistent with the written contract, violated the agreement as modified. The Plaintiff also makes several other claims including promissory estoppel, fraud, breach of crossover agreement, breach of fiduciary relationship, tortious interference and violation of federal antitrust law.

The Defendants have moved for summary judgement. First, Amana and the Defendant Raytheon, Amana’s parent corporation, have moved for summary judgement claiming, among other things, that the contract’s “at-will” clause is clear and was never, nor could it ever have been, modified by oral agreement or course of conduct. The Defendants also claims that even if the contract was modifiable by oral agreement or course of dealing, the Plaintiff has failed to point to sufficient evidence of this oral or course of dealing modification upon which a reasonable juror could find in favor of the Plaintiff.

Furthermore, Raytheon has separately moved for Summary judgment claiming that it is not responsible for the acts of Amana, and that this is not a case where the Court should “pierce the Corporate veil” in the event that Amana is found to be liable for any damages. Thus, Raytheon argues, the Court should grant summary judgement in its favor for that reason as well.

STANDARD OF REVIEW

The narrow question that we must decide on a motion for summary judgment is whether there exists a “genuine issue as to any material fact and [whether] the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The Supreme Court elaborated upon the appropriate standard in deciding a motion for summary judgment as follows:

[T]he plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case and on which that party will bear the burden of proof at trial.

Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986).

The moving party has the initial burden of showing the absence of a genuine issue of material fact as to an essential element of the non-movant’s case. Id, at 321, 106 S.Ct. at 2551; Guarino v. Brookfield Township Trustees, 980 F,2d 399, 405 (6th Cir.1992); Street v. J.C. Bradford & Co., 886 F.2d 1472, 1479 (6th Cir.1989). If the moving party meets this burden, then the non-moving party “must set forth specific facts showing there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). Guarino, 980 F.2d at 405.

As the Supreme Court stated in Celotex, the non-moving party must “designate” specific facts showing there is a genuine issue for trial. Celotex, 477 U.S. at 324, 106 S.Ct. at 2553; Guarino, 980 F.2d at 405. Although the burden might not require the non-moving party to “designate” facts by citing page numbers, “ ‘the designated portions must be presented with enough specificity that the district court can readily identify the facts upon which the non-moving party relies.’ ” Guarino, 980 F.2d at 405 (quoting InterRoyal Corp. v. Sponseller, 889 F.2d 108, *641 Ill (6th Cir.1989), cert, denied, 494 U.S. 1091, 110 S.Ct. 1839, 108 L.Ed.2d 967 (1990)).

Summary judgment is not appropriate if the evidence is such that a reasonable jury could return a verdict for the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). Conclusory allegations, however, are not sufficient to defeat a motion for summary judgment. McDonald v. Union Camp Corp., 898 F.2d 1155, 1162 (6th Cir.1990).

DISCUSSION

I

The Written Agreement

A

In this case the Court must consider whether under Iowa law, the parties were free to modify the at-will provision of the agreement whether orally or through their course of dealing. The Court must further consider, whether, if such oral modifications were permitted, the parties did in fact modify the contract in the manner alleged by the Plaintiff.

The parties do not dispute that the contract contained the following language:

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850 F. Supp. 637, 1994 U.S. Dist. LEXIS 5399, 1994 WL 158822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oki-distributing-inc-v-amana-refrigeration-inc-ohsd-1994.