Patterson v. Ford Motor Co.

931 F. Supp. 98, 1996 U.S. Dist. LEXIS 9139, 1996 WL 361110
CourtDistrict Court, D. Puerto Rico
DecidedJune 11, 1996
DocketCivil No. 95-1473 (JAF)
StatusPublished
Cited by1 cases

This text of 931 F. Supp. 98 (Patterson v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Ford Motor Co., 931 F. Supp. 98, 1996 U.S. Dist. LEXIS 9139, 1996 WL 361110 (prd 1996).

Opinion

OPINION AND ORDER

FUSTE, District Judge.

Plaintiff, Cary R. Patterson, d/b/a Ford Military Auto Sales (Patterson), brought this action pursuant to 10 L.P.R.A. § 278-278d (1976 & Supp.1995) (Law 75), and the Automobile Dealer’s Day in Court Act, 15 U.S.C. §§ 1221-1225 (1988), claiming that codefend-ant, Ford Motor Company, breached its distributor agreement. Plaintiff also claims that codefendants, Overseas Military Sales Corporation and Military Car Sales, Inc., a/k/a Overseas Military Car Sales Group (Overseas Military Sales Group), tortiously interfered with plaintiffs distributor agreement with Ford Motor Company. Code-fendant Ford Motor Company has filed a motion to dismiss pursuant to Fed.R.Civ.P. 12, claiming that plaintiff did not have a distribution agreement protected by Law 75. Codefendant Overseas Military Sales Group has also filed a motion to dismiss under Fed.R.Civ.P. 12, arguing that Overseas Military Sales Group has not tortiously interfered with the agreement between plaintiff and Ford Motor Company. Plaintiff filed an opposition to eodefendants’ request for summary dismissal. This opposition was followed by codefendant Ford Motor Company’s reply. Having examined the parties’ respective contentions, we treat the motions to dismiss as motions for summary judgment, find no genuine controversies of material fact, and GRANT movants’ motions.

I.

Introduction

Since December 1988, Ford Motor Company has had an agreement with the United States Army and Air Force Exchange Service (AAFES) to sell Ford vehicles to qualified United States military customers. In addition, from January 1989, until December 1995, Ford Motor Company had a similar sales agreement with the United States Navy Resale and Services Support Office (NAVRESSO). Docket Document No. 13, Exhs. 1, 2, 3, & 4. These agreements aim to provide United States-manufaetured products at a pre-determined, competitive price to qualifying military customers stationed overseas. Id., Exh. 6, ¶ S.

On March 8, 1989, Ford Motor Company and Patterson agreed that, as provided in these agreements, Patterson would serve as a Ford Motor Company military sales representative at three military installations in Puerto Rico: Fort Buchanan, Roosevelt Roads, and Sabana Seca. Id., Exh. 8, Attachments. Although the agreement was binding for a one-year period, the parties agreed that “[the] Agreement may be terminated by either party at any time at will upon sixty (60) day prior written notice given to the other,” and that the agreement was to be construed pursuant to Michigan law. Id. In February 1991, the parties extended the agreement until March 8, 1995, leaving in force all the terms and conditions of the 1989 agreement. Id., Exh. 11.

In 1994, Ford Motor Company conducted a worldwide market study of its military sales, and found military sales declining due to base closings. As a result of this study, Ford Motor Company decided to contract only one sales agent, Overseas Military Sales Group. Id., Exh. 6. In a letter dated February 15, 1995, Ford Motor Company notified Patterson that, effective May 1, 1995, Ford Motor [101]*101Company would transfer “the responsibility for all military and diplomatic sales to Overseas Military Sales Group.” Docket Document No. 2, Exh. D. Because Ford Motor Company’s agreement with Patterson was to expire on March 8, 1995, Ford agreed to extend the agreement until May 1, 1995. Id., Exh. F.

II.

Fed.R.Civ.P. 12 and 56 Standards

When a court considers matters outside the pleadings in deciding a motion to dismiss pursuant to Rule 12(b), the court must treat the motion as one for summary judgment. Cooperativa de Ahorro y Crédito Aguada v. Kidder, Peabody & Co., 993 F.2d 269, 272 (1st Cir.1993), cert. denied, — U.S. -, 115 S.Ct. 1792, 131 L.Ed.2d 720 (1995); Garita Hotel Ltd. Partnership v. Ponce Federal Bank, F.S.B., 958 F.2d 15, 18 (1st Cir.1992). Since we have considered extra-pleading material in disposing of the present case, we convert defendants’ motions to dismiss into one for summary judgment.

In general, when treating a Rule 12 motion as a motion for summary judgment, the court must notify all parties of the conversion, in order to give them a reasonable opportunity to present all material pertinent to this type of motion. Fed.R.Civ.P. 12(b) and (c); Chaparro-Febus v. International Longshoremen Ass’n, Local 1575, 983 F.2d 325, 331 (1st Cir.1992). However, this court finds no need to mechanically enforce the requirement of express notice. Id. A district court does not have to give express notice when the opposing party has received movant’s motion and materials and has had a reasonable opportunity to respond to them. Id., citing, Moody v. Town of Weymouth, 805 F.2d 30, 31 (1st Cir.1986). In the present case, plaintiff has treated the motions to dismiss as motions for summary judgment and has obtained and submitted additional evidentiary materials to rebut movants’ motions. In fact, we convert codefendants’ motions to dismiss into a summary judgment motion because we have precisely considered the extraneous material that plaintiff has appended to its opposition motion. Given these circumstances, we deem proper our treatment of the motions as one for summary judgment.

A motion for summary judgment by a defendant should be granted if the pleadings, affidavits, and documents on file show that there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law. Fed.R.Civ.P. 56(c); Lipsett v. University of Puerto Rico, 864 F.2d 881, 894 (1st Cir.1988). A factual dispute is “material” if it “might affect the outcome of the suit under the governing law,” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986), and “genuine”, “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. “Factual disputes that are irrelevant or unnecessary will not be counted.” Id. at 248, 106 S.Ct. at 2510. Under Fed.R.Civ.P. 56(e), the nonmoving party “may not rest upon the mere allegations or denials of the adverse party’s pleadings, but ...

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931 F. Supp. 98, 1996 U.S. Dist. LEXIS 9139, 1996 WL 361110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-ford-motor-co-prd-1996.