Olin Corp. v. Lambda Electronics, Inc.

39 F. Supp. 2d 912, 1998 U.S. Dist. LEXIS 20765, 1998 WL 939454
CourtDistrict Court, E.D. Tennessee
DecidedDecember 10, 1998
Docket1:98-cv-00150
StatusPublished
Cited by5 cases

This text of 39 F. Supp. 2d 912 (Olin Corp. v. Lambda Electronics, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olin Corp. v. Lambda Electronics, Inc., 39 F. Supp. 2d 912, 1998 U.S. Dist. LEXIS 20765, 1998 WL 939454 (E.D. Tenn. 1998).

Opinion

MEMORANDUM

EDGAR, Chief Judge."

I.

This ease is before the Court on the motion of defendant Lambda Electronics, Inc. (“Lambda”) to dismiss (Court File No. 3) two of the causes of action asserted by *913 plaintiff Olin Corporation (“Olin”). For the reasons set forth herein, the motion will be GRANTED IN PART and DENIED IN PART.

II.

Fed.R.CivP. 12(b)(6) provides that a complaint may be dismissed if it fails to state a claim upon which relief can be granted. The purpose of Rule 12(b)(6) is to permit a defendant to test whether, as a matter of law, the plaintiff is entitled to relief even if everything alleged in the complaint is true. Mayer v. Mylod, 988 F.2d 635, 638 (6th Cir.1993); Nishiyama v. Dickson County, Tennessee, 814 F.2d 277, 279 (6th Cir.1987). A complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of the complaint which would entitle the plaintiff to relief. Haines v. Kerner, 404 U.S. 519, 92 S.Ct. 594, 30 L.Ed.2d 652 (1972); Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957), Saglioccolo v. Eagle Ins. Co., 112 F.3d 226, 228 (6th Cir.1997); Columbia Natural Resources, Inc. v. Tatum, 58 F.3d 1101, 1109 (6th Cir.1995), cert. denied, 517 U.S. 1163, 116 S.Ct. 1560, 134 L.Ed.2d 661 (1996).

In order to preclude dismissal under Rule 12(b)(6), a complaint must contain either direct or inferential allegations which comprise all of the essential, material elements necessary to sustain a claim for relief under some viable legal theory. Lewis v. ACB Business Services, Inc., 135 F.3d 389, 406 (6th Cir.1998); Columbia Natural Resources, 58 F.3d at 1109; Allard v. Weitzman (In re DeLorean Motor Co.), 991 F.2d 1236, 1240 (6th Cir.1993); Scheid v. Fanny Farmer Candy Shops, Inc., 859 F.2d 434, 436 (6th Cir.1988). The Court is required to construe the complaint in the light most favorable to the plaintiff and to accept all well-pleaded allegations of fact as being true. Scheuer v. Rhodes, 416 U.S. 232, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); Columbia Natural Resources, 58 F.3d at 1109; Mayer, 988 F.2d at 638; Collins v. Nagle, 892 F.2d 489, 493 (6th Cir.1989). When a factual allegation is capable of more than one reasonable inference, it must be construed in the plaintiffs favor. Saglioccolo, 112 F.3d at 228; Columbia Natural Resources, 58 F.3d at 1109. The Court may not grant a Rule 12(b)(6) motion to dismiss simply because the Court does not believe the allegations of fact in the complaint. In re Sofamor Danek Group, Inc., 123 F.3d 394, 400 (6th Cir.1997), cert. denied, — U.S. -, 118 S.Ct. 1675, 140 L.Ed.2d 813 (1998); Saglioccolo, 112 F.3d at 228-29; Columbia Natural Resources, 58 F.3d at 1109; Allard, 991 F.2d at 1240. The Court does not, however, have to accept as true mere legal conclusions and unwarranted inferences of fact. Lewis, 135 F.3d at 405; Grindstaff v. Green, 133 F.3d 416, 421 (6th Cir.1998); Columbia Natural Resources, 58 F.3d at 1109; Morgan v. Church’s Fried Chicken, 829 F.2d 10, 12 (6th Cir.1987).

III.

The facts necessary to decide Lambda’s motion are not in dispute. Olin, a Virginia corporation, operates a chemical manufacturing plant at Charleston, Tennessee. Olin purchased from Lambda some “power supplies” including some diodes which Olin claims did not live up to promises made by Lambda, and were “defective” in that they did not conform to the sales contract between the parties. As a result, Olin claims that its plant was shut down, with resulting losses of Two Million Dollars. Olin has brought claims against Lambda under the (1) Tennessee Consumer Act, TenN.Code Ann. §§ 47-18-101 — 1604; (2) Tennessee Products Liability Act, Tenn.Code Ann. §§ 29-28-102 — 108; and (3) sales chapter of Tennessee’s adaptation of the UnifoRM COMMERCIAL CODE, TENN.CODE Ann. §§ 47-2-101 — 725. Lambda asserts that Olin’s claims under the Tennessee Consumer Protection Act and the Tennessee Products Liability Act should be dismissed.

*914 IV.

The Tennessee Consumer Protection Act (“TCPA”) provides a private right of action for a' person who is the victim of an “unfair or deceptive” act in the course of trade or commerce. Tenn. Code Ann. § 47-18-109; Menuskin v. Williams, 145 F.3d 755, 767 (6th Cir.1998). Lambda contends that the statute does not protect corporations, such as Olin. However, Tenn.Code Ann. § 47-18-109(a)(1) gives a right of action to a “person”; and “person” is defined in the statute as including corporations. Tenn.Code Ann. § 47-18-103(7). It is thus clear that the TCPA does provide a remedy to corporations. Other language in the statute buttresses this conclusion. A stated purpose of the statute is to “protect consumers and legitimate business enterprises .... ” (Emphasis supplied). Presumably Olin is a legitimate business enterprise.

Next, Lambda contends that the TCPA is not applicable here because Olin does not allege a “consumer transaction.” “Consumer transaction” does not appear to be a term of art mentioned in the statute. Case law interpreting the statute is sparse. There is no authority that a “consumer transaction” is a sine qua non of TCPA applicability.

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Bluebook (online)
39 F. Supp. 2d 912, 1998 U.S. Dist. LEXIS 20765, 1998 WL 939454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olin-corp-v-lambda-electronics-inc-tned-1998.