Owens v. Blue Tee Corp.

177 F.R.D. 673, 41 Fed. R. Serv. 3d 191, 1998 U.S. Dist. LEXIS 1545, 1998 WL 59226
CourtDistrict Court, M.D. Alabama
DecidedFebruary 10, 1998
DocketCiv.A. Nos. 95-D-1466-E, 97-D-1349-E
StatusPublished
Cited by18 cases

This text of 177 F.R.D. 673 (Owens v. Blue Tee Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owens v. Blue Tee Corp., 177 F.R.D. 673, 41 Fed. R. Serv. 3d 191, 1998 U.S. Dist. LEXIS 1545, 1998 WL 59226 (M.D. Ala. 1998).

Opinion

MEMORANDUM OPINION AND ORDER

DE MENT, District Judge.

Currently pending before the court are the following motions filed in 95-D-1466-E (“Alabama Action”): a motion to dismiss filed on December 22, 1995, by defendant Blue Tee Corporation d/b/a George E. Failing Company (“Gefeo”)1; a motion to dismiss Gefco’s Counterclaims One, Two, Three and Five filed by Plaintiff Mid-America Drilling Equipment, Inc. (“Mid-America”) on January 16, 1996; an alternative motion to transfer venue filed by Gefeo on February 15, 1996; and, last, a motion for oral argument filed by plaintiffs Mid-America, George Ronald Owens (“Owens”) and Drillmaster Corp. (“Drillmaster”). Also before the court is a Joint Stipulation of the Parties Prior to Consolidation of Actions, filed February 4, 1998. The motions have been fully briefed by all parties. After careful consideration of the arguments of counsel, the law, and the record as a whole, the court finds that the motions to dismiss are due to be granted in part and denied in part. The Motion to Transfer Venue is due to be denied.

In an order dated May 30, 1997, the court stated that upon review of a joint status report, it would make a determination as to whether oral argument is necessary before ruling on the Parties’ respective motions to dismiss and Defendant’s alternative motion to transfer. First, the court notes that it currently has more than four hundred cases on its civil docket and a great number of others on its criminal docket. Thus, the court simply does not have the time to grant and hear all oral arguments requested. After reviewing the record in the instant case, the court is of the opinion that it has sufficient information to determine the issues before it.2 Accordingly, the court finds that Plaintiffs’ request for oral argument is due to be denied.

The court finds that Gefco’s counterclaims One, Two, Three and Five, as asserted against Mid-America, are due to be stricken, on the court’s initiative, pursuant to Rule 12(f) of the Federal Rules of Civil Procedure. Additionally, the Parties stipulate that Claim Four of Gefco’s counterclaim is due to be dismissed with prejudice, as is Plaintiffs’ Claim Four. Accordingly, Mid-America’s Motion to Dismiss is due to be denied as moot.

BACKGROUND

In July 1989, Gefeo contracted with Mid-America and Owens, the president and sole owner of Mid-America, to distribute Gefeo products, primarily water well drilling equipment and accessories, in Florida, South Alabama and South Georgia. In May 1991, Gefeo, Mid-America and Owens entered into an exclusive distribution agreement, but in August 1991, Gefeo canceled the exclusivity provision. Significant disagreement exists [676]*676over the August 1991 letters.3 Gefco interprets the letters as a cancellation of the agreement which made Mid-America the exclusive distributor of Gefco products, but not a termination of the agreement that Mid-America was to distribute only Gefco products. Mid-America, on the other hand, contends that the termination letter ended all exclusivity agreements between Mid-America and Gefco.

Sometime subsequent to the August 1991 letters, Mid-America and Owens contracted with Drillmaster for the distribution of Drillmaster’s products. On January 30, 1995, Gefco sent another letter to Owens and Mid-America, this time terminating the relationship between Gefco and Mid-America. Two days later, on February 1,1995, Gefco sent a notice to Mid-America’s customers informing them that Gefco and Mid-America had terminated their manufacturer/distributor relationship.

On May 30, 1995, Gefco filed an action in the District Court of Garfield County, Oklahoma, against Mid-America, Owens and Drillmaster. The suit, styled Blue Tee Corporation d/b/a George E. Failing Company v. Mid-America Drilling Equipment, Inc., George Ronald Owens, and Drillmaster Corp. (“Oklahoma Action”), was removed to the United States District Court, for the Western District of Oklahoma. In the Oklahoma Action, Gefco sought damages against Mid-America for an open account for goods purchased and breach of the 1991 exclusive dealership agreement. Gefco brought two claims against all three defendants: tortuous interference with Gefco’s contractual relationship with its customers in Florida and Georgia and deceptive trade practices in violation of the Oklahoma Deceptive Trade Practices Act, 78 O.S. § 51 et seq., in the form of false and misleading statements of fact with the intention of disparaging the goods, services and business of Gefco. Finally, Gefco brought a claim of breach of fiduciary duty of good faith and fair dealing against Mid-America and Owens.

Gefco’s claims appear to have arisen from events surrounding the distribution agreement and its subsequent termination. To support its tortuous interference claim, Gefco contends that Mid-America and Owens wrongfully contracted with Drillmaster in violation of Mid-America’s agreement to distribute only Gefco’s products. Additionally, Gefco contends that in connection with this violation, Mid-America and Owens made disparaging statements and claims in Florida about Gefco’s products. On July 27, 1995, the Honorable Wayne E. Alley, District Judge for the Western District of Oklahoma, dismissed Gefco’s action against Owens and Drillmaster for lack of personal jurisdiction. All of Gefco’s claims against Mid-America remained intact, and, to date, Mid-America has filed no counterclaim against Gefco.

Three months after the Oklahoma court dismissed Drillmaster and Owens for lack of personal jurisdiction, Drillmaster, Owens and Mid-America filed suit in the Middle District of Alabama against Gefco and Jeff Smith (“Alabama Action”). The three Plaintiffs claimed damages for the following: fraud and/or misrepresentation concerning the exclusivity provision in the distribution agreement; tortuous interference with the contractual relationship between Mid-America, Drillmaster and Owens; tortuous interference with the business relationship between Mid-America, Drillmaster and Owens; and violation of the Uniform Deceptive Trade Practices Act in the form of making false and misleading statements of fact with the intention of disparaging the goods, services and business of Mid-America, Drillmaster and Owens. With regard to the fraud and/or misrepresentation claims, Mid-America contends that Gefco’s August 1991 letters to Mid-America and the February 1995 letter [677]*677to Gefco/Mid-America customers were willful or reckless misrepresentations, on which Mid-America relied in developing accounts with other drilling manufacturers including Drillmaster. Mid-America contends that as a result of these misrepresentations it suffered various damages, including the loss of substantial commissions for the sale of Gefco products.

In support of its claims against Gefco for tortuous interference and violation of the Alabama Deceptive Trade Practices Act, Mid-America first points to the February 1, 1995, notice to Mid-America and Gefco’s customers, in which Gefco urged the customers to contact Gefco employees directly while it reestablished itself in the area. Mid-America also contends there was a concerted effort by Gefco to destroy Mid-America’s relationship with its customers as evidenced by a Gefco internal memorandum dated May 4, 1995. In this memo, Larry West, a Gefco employee, details his visit with a “Smokey,” a former Gefco customer, who had recently purchased Drillmaster equipment from Mid-America.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ofer v. Millan
S.D. Florida, 2024
Univalor Trust, SA v. Columbia Petroleum, LLC
315 F.R.D. 374 (S.D. Alabama, 2016)
Shirley Denise Turner v. Carl Angelo Green.
85 So. 3d 1016 (Court of Civil Appeals of Alabama, 2011)
Stewart v. Brinley
902 So. 2d 1 (Supreme Court of Alabama, 2004)
Liberty Mut. Ins. Co. v. Wheelwright Trucking Co.
851 So. 2d 466 (Supreme Court of Alabama, 2002)
Blue Cross & Blue Shield v. Hobbs
209 F.R.D. 218 (M.D. Alabama, 2002)
Barnett v. Alabama
171 F. Supp. 2d 1292 (S.D. Alabama, 2001)
Irwin v. Zila, Inc.
168 F. Supp. 2d 1294 (M.D. Alabama, 2001)
Southern Union Co. v. Southwest Gas Corp.
165 F. Supp. 2d 1010 (D. Arizona, 2001)
Schlinkert Sports Associates, Inc. v. Bargeron
806 So. 2d 376 (Supreme Court of Alabama, 2001)
Ex Parte Cincinnati Ins. Companies
806 So. 2d 376 (Supreme Court of Alabama, 2001)
Folkes v. Haley
64 F. Supp. 2d 1152 (M.D. Alabama, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
177 F.R.D. 673, 41 Fed. R. Serv. 3d 191, 1998 U.S. Dist. LEXIS 1545, 1998 WL 59226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-v-blue-tee-corp-almd-1998.