Orteck International Inc. v. Transpacific Tire & Wheel, Inc.

704 F. Supp. 2d 499, 2010 U.S. Dist. LEXIS 30721
CourtDistrict Court, D. Maryland
DecidedMarch 30, 2010
DocketCivil Action DKC 2005-2882
StatusPublished
Cited by6 cases

This text of 704 F. Supp. 2d 499 (Orteck International Inc. v. Transpacific Tire & Wheel, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orteck International Inc. v. Transpacific Tire & Wheel, Inc., 704 F. Supp. 2d 499, 2010 U.S. Dist. LEXIS 30721 (D. Md. 2010).

Opinion

MEMORANDUM OPINION

DEBORAH K. CHASANOW, District Judge.

Presently pending and ready for resolution in this commercial contract case is the motion by Defendants Transpacific Tire & Wheel, Inc. et al. for summary judgment. (Paper 112). The issues have been briefed fully and the court now rules, no hearing being deemed necessary. Local Rule 105.6. For the following reasons, Defendants’ motion will be granted.

I. Background

A. Factual Background

The following facts are either undisputed or viewed in the light most favorable to the non-moving parties, the Plaintiffs. Plaintiff Orteck International, Inc. (“Orteck”) is a tire distributor that is incorporated and has its sole place of business in Maryland. Plaintiff Venetian Investments (“Venetian”) is a limited liability company organized under Maryland law. Plaintiffs are both owned by the Veen family. Defendant Transpacific Tire & Wheel, Inc. (“Transpacific”) is a corporation formed under California law in 2002. Defendant GITI China (“GTC”) is a manufacturer of tires located in China. Defendant GITI USA (“GT USA”) is corporation formed under Delaware law, which began its operations on November 1, 2005, after acquiring TransPacific’s assets that were related to TransPacific’s business with Chinese tire manufacturers. Defendant Brian Chan is a California resident and was an *504 employee of GTC and Transpacific. The court has subject matter jurisdiction because the parties are citizens of different states and the amount in controversy exceeds $75,000, exclusive of interest, legal fees, and costs. 28 U.S.C. §§ 1332 and 1334(b).

Plaintiffs allege causes of action concerning two purported agreements: an exclusive distribution agreement and an agreement concerning a warehouse in Maryland.

1. The Exclusive Distribution Agreement

Orteck and GTC appear to have started their business relationship in the fall of 2001, when Sonny Veen (“Veen”), executive vice president of purchasing for Orteck, traveled to GTC’s office in Shanghai, China and met with Y.C. Chong (“Chong”) of GTC. (Paper 112, Attach. 8, Veen PI Deck, ¶ 14). Veen testified that “[ajfter the meeting, GT[C] entered into a contract with Orteck for the exclusive wholesale distribution of the Kaiyuan, Primewell, and GT brand truck tires in the United States.” 1 (Id.).

In October or November of 2001, Veen met with Chong and Brian Chan (“Chan”), representatives of GTC, at the Special Equipment Manufacturers Association (“SEMA”) trade show in Las Vegas, Nevada. (Paper 58 ¶ 28). Orteck claims that Chan and Chong, on behalf of GTC, entered into a contract whereby Orteck would be the exclusive wholesale distributor of GTC-manufactured “Kaiyuan” brand tires in the United States. (Paper 112, Attach. 5, Veen Dep., at 99:8-18).

Plaintiffs allege that an email exchange between Veen, Sunny Zhang (a purchasing agent who worked in China for Orteck) (“Zhang”), and Chong served to confirm the agreements made between Orteck and GTC in Las Vegas. (Paper 58 ¶ 31). Veen’s email, addressed to Zhang and copying Chong, dated November 7, 2001, stated, in relevant part:

Dear Sunny,
Following are the details of our meeting with GT.
We met with Brian Chan and Mr [sic] Chong.
Following points were discussed and agreed upon:
1.) Orteck will market the Kiayuan [sic] Radial Truck tires in USA [sic] and Canada. We will take their entire production and GT agreed not to offer the tire to any one [sic] else in USA or Canada. ...
Regards,
Sonny Veen

(Paper 112, Attach. 10, at 2-3).

Chong replied to Veen on November 13, 2001; he wrote:

Dear Sonny, its [sic] good that we discussed some major issues in LV. I would like to in inform that there is an error in point 1). In the meeting, we mentioned that we would sell Kai Yuen [sic] brand to you in USA but not Canada. Pis [sic] take note.
Regards,
YCChong

(Id., at 2).

In December 2001, Veen traveled to China to visit the Kaiyuan tire factory in Hefei, China. (Paper 58 ¶¶ 34-35). Plaintiffs allege that, during Veen’s trip, GTC’s employee Lily Huihua again confirmed *505 that Orteck would be the exclusive wholesaler of Kaiyuan tires in the United States. (Id.).

In January 2002, Veen traveled to China for another meeting with GTC officials. (Paper 112, Attach. 5, Veen Dep., at 119:7-15). During this trip, Veen toured GTC’s factory, and met with Chong, Huihua, and Chan. Plaintiffs allege that, during this meeting, GTC informed Orteck that the “Kaiyuan” brand name would be changed to “Primewell”. Veen testified that many matters were discussed but that no “new agreement” was made at this meeting. (Id. at 122:16-21).

Plaintiffs assert that Huihua sent an email to Veen, copying Zhang, Chan, and Chong, on February 1, 2002, which confirmed the agreements reached between GTC and Orteck during Veen’s visit to China. (Paper 58 at ¶ 39). Huihua’s email stated:

Dear Sonny,
We thank you for your visit to our office on Jan. 22, 2002. We would like to minute major points discussed as follows.
I) TBR
1) The branding policy is discussed, Orteck would handle the Prime Well brand in USA market when the side plating is ready. In the meantime, Orteck would continue taking the Kaiyuan brand. Orteck would submit orders of Jan. Feb and March —
Kind regards,
Y C Chong/Lily

(Paper 112, Attach. 11, at 1-2).

In early September 2002, representatives from GTC and Orteck met in New York. Plaintiffs allege that, at this meeting, Veen and Chong discussed the ongoing relationship between GTC and Orteck and their agreement that Plaintiffs would be the exclusive distributor of Primewell tires. (Paper 112, Attach. 5, Veen Dep., at 133:3-17). On September 9, 2002, Veen sent Chong an email, which stated:

Minutes of Meeting in NY.
2) GT to suplly [sic] PW exclusively to Orteck. GT to send their stock every week and orteck [sic] will place orders. Further Orteck can give a production plan to GT for PW production of TBR for the following month.
Please confirm the above and our meeting date at SEMA.
Sonny Veen

(Paper 112, Attach. 12, at 1). On September 13, 2002, Chong responded:

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Bluebook (online)
704 F. Supp. 2d 499, 2010 U.S. Dist. LEXIS 30721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orteck-international-inc-v-transpacific-tire-wheel-inc-mdd-2010.