Petroleum Products, Inc. v. Total Petroleum, Inc.

795 F. Supp. 356, 1992 U.S. Dist. LEXIS 8094, 1992 WL 113635
CourtDistrict Court, D. Kansas
DecidedMay 5, 1992
DocketCiv. A. No. 90-1290-T
StatusPublished
Cited by3 cases

This text of 795 F. Supp. 356 (Petroleum Products, Inc. v. Total Petroleum, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petroleum Products, Inc. v. Total Petroleum, Inc., 795 F. Supp. 356, 1992 U.S. Dist. LEXIS 8094, 1992 WL 113635 (D. Kan. 1992).

Opinion

MEMORANDUM AND ORDER

THEIS, District Judge.

This matter is before the court on the defendant’s motion for summary judgment (Doc. 15). The defendant argues that plaintiff’s claim is barred by the statute of limitations. In response to the motion for summary judgment, plaintiff does not dispute that the statute of limitations has expired on its claim. Rather, the plaintiff argues that the defendant is equitably es-topped from asserting the statute of limitations.

The court is familiar with the standards governing the consideration of a motion for summary judgment. The Federal Rules of Civil Procedure provide that summary [358]*358judgment is appropriate when the documentary evidence filed with the motion “show[s] that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). A principal purpose “of the summary judgment rule is to isolate and dispose of factually unsupported claims or defenses.... ” Celotex Corp. v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). The court’s inquiry is to determine “whether there is the need for a trial — whether, in other words, there are any genuine factual issues that properly can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986).

The burden at the summary judgment stage is similar to the burden of proof at trial. The court must enter 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, 477 U.S. at 322, 106 S.Ct. at 2552. The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact on its claim. Rule 56, however, imposes no requirement on the moving party to “support its motion with affidavits or other similar materials negating the opponent’s claim.” Id. at 323, 106 S.Ct. at 2553 (emphasis in original). Once the moving party has properly supported its motion for summary judgment, the nonmoving party may not rest upon mere allegations or denials contained in the nonmoving party’s pleadings, but must set forth specific facts showing a genuine issue for trial, relying upon the types of evidentiary materials contemplated by Rule 56. Fed.R.Civ.P. 56(e). Each party must demonstrate to the court the existence of contested facts on each claim it will have to prove at trial. Celotex, 477 U.S. at 324, 106 S.Ct. at 2553. The court reviews the evidence on summary judgment under the substantive law and based on the evidentiary burden the party will face at trial on the particular claim. Anderson, 477 U.S. at 254, 106 S.Ct. at 2513.

At the summary judgment stage, the judge’s function is not to weight the evidence and determine the truth of the matter, but to determine whether there is a genuine issue for trial. Anderson, 477 U.S. at 249, 106 S.Ct. at 2510-11. Credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are functions of the finder of fact, not the functions of the judge when ruling on a motion for summary judgment. The evidence of the non-moving party is to be believed. All justifiable inferences are to be drawn in favor of the nonmovant. Id. at 255, 106 S.Ct. at 2513-14.

The following facts are uncontroverted.

1. Petroleum Processing, Inc., and Total Petroleum, Inc. (Total) entered into a Letter of Agreement dated May 23, 1980, for the processing of normal butane at a bu-tamer facility (or iso plant) to be constructed and installed by Petroleum Processing, Inc. The Letter of Agreement was amended by letter dated August 1, 1980.

2. The execution of the May 23, 1980 Letter of Agreement was an inducement to build the iso plant. Construction of the iso plant commenced in approximately December 1980.

3. The iso plant became operational and Total delivered normal butane in approximately January 1982.

4. By virtue of assignments and name changes, plaintiff Petroleum Products, Inc. (PPI) has succeeded to all rights of Petroleum Processing, Inc. in connection with the May 23, 1980 contract and all amendments. PPI formerly did business as Burke Energy Corporation,' but the name was changed to PPI in 1986.

5. The last delivery of normal butane by Total and the last redelivery of isobu-tane by PPI pursuant to the May 23, 1980 Letter of Agreement occurred on or about December 26, 1985.

[359]*3596. The May 23, 1980 Letter of Agreement does not provide for the payment by Total of any transportation fees or tariffs to PPI for the use of any pipeline, and does not include any provision establishing the amount of any transportation fee or tariff for the use of any pipeline.

7. At the time the May 23, 1980 Letter of Agreement was signed and at the time it was amended in August 1980, ho pipeline had yet been constructed for delivery of normal butane to PPI’s iso plant.

8. During the negotiation of the May 23,1980 Letter of Agreement, there was no discussion about transportation of the butane or about what pipelines might be made available for delivery of normal butane to the iso plant.

9. Subsequently in late 1981, a small pipeline (approximately one-half mile in length) was constructed between PPI’s iso plant and a fractionator owned by Mid America Pipeline (Mapco) located directly adjacent to the iso plant. The pipeline was installed and financed by Mapco, although PPI has since reimbursed Mapco. There is a dispute between Mapco and PPI as to the ownership of the pipeline.

10. By letter of June 8, 1983, PPI first attempted to charge Total for pipeline transportation charges by submitting to Total Invoice No. 6718 dated June 8, 1983.

11. Total did not pay the June 8, 1983 invoice, but instead deducted $10,365.58 as an “Improper Transportation Offset.”

12. PPI objected to Total’s refusal to pay the transportation invoice and to Total’s deduction of the $10,365.58.

13. On October 7, 1983, Total filed an action in the United States District Court for the District of Kansas, Civil Action No. 83-1888, entitled Total Petroleum, Inc. v. Burke Energy Corporation and Petroleum Processing, Inc. The action sought a declaratory judgment concerning the validity of the May 23, 1980 Letter of Agreement, as amended.

14. On or about October 14, 1983, Burke Energy Corporation and Petroleum Processing, Inc. (now PPI) filed their answer and counterclaim in Civil Action No. 83-1888.

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Bluebook (online)
795 F. Supp. 356, 1992 U.S. Dist. LEXIS 8094, 1992 WL 113635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petroleum-products-inc-v-total-petroleum-inc-ksd-1992.