Polycon Industries Inc v. R & B Plastics Machinery, LLC

District Court, N.D. Indiana·Decided July 8, 2025·No. 2:19-cv-00485·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION

POLYCON INDUSTRIES, INC., ) ) Plaintiff & Counter-Defendant, ) ) v. ) Case No. 2:19-CV-485-PPS ) R&B PLASTICS MACHINERY, LLC, ) and MONROE MOLD, LLC, ) ) Defendants & Counterclaimants. )

OPINION AND ORDER

Plaintiff Polycon Industries, Inc. manufactures “blow molded” plastic containers, and Defendant R&B Plastics Machinery, LLC designs and manufactures the machines that make those containers. Polycon purchased two machines from R&B for roughly $4.7 million. This dispute centers on whether R&B delivered machines consistent with what it promised. At long last, in what is effectively the fifth motion for summary judgment in this case, a question fundamental to Polycon’s theory of the case is squarely before the Court: Can Polycon’s breach of contract and breach of warranty claims coexist when they are premised upon the same contractual language found in the warranty? Indiana law is clear that they cannot. R&B’s Motion for Summary Judgment on Polycon’s Breach of Contract Claim will therefore be granted. Background The question of whether Polycon’s breach of contract and warranty claims can coexist has been percolating for almost a year now. I will assume familiarity with how the issue first arose and developed, which I described in detail in my March 26, 2025, Opinion denying R&B’s Motion to Reconsider. [See DE 275 at 10–18.] In that Opinion, I

declined R&B’s invitation to rule on the merits of R&B’s arguments on this matter because the requirements of entering summary judgment sua sponte under Rule 56(f)(3) had not been met. [Id. at 16–18.] I noted that R&B could bring this argument in its proper form “either prior to trial in the form of a motion for summary judgment or during a Rule 50 motion.” [Id. at 18.] R&B chose the former option. Many of the facts relevant to the transaction between R&B and Polycon have

been recited in prior summary judgment opinions. [See DE 152 at 2–7; DE 236 at 2–7.] There’s no need to regurgitate the lengthy background of this transaction and how the current question before the Court arose. But given that this is a fresh summary judgment motion, I will, as required, set out the undisputed facts concerning Polycon’s breach of contract and warranty claims that are relevant here.

Undisputed Facts In April 2016, Polycon and R&B signed a Terms and Conditions of Sale agreement wherein Polycon agreed to purchase two blow molding machines from R&B. [DE 281 at ¶¶1–2.] Section 3(a) of Terms and Conditions of Sale includes an express warranty:

(a) Seller warrants that all Equipment and Work furnished pursuant hereto shall: (i) conform to all specifications drawings, samples, and descriptions given (the “Specifications”), (ii) be new and, for a period of one (1) years from the successful operation of the Equipment at Purchaser’s facility (the “Equipment Warranty Period”), be free from defects in design, material, workmanship, warning and instruction, and (iii) satisfy all relevant governmental and industry standards applicable at the time of shipment. Inspection tests, and acceptance or use of the Equipment or Work furnished hereunder shall not affect Seller’s obligations under this warranty, and such warranty shall survive inspection, tests, acceptance and use.

[Id. at ¶4 (quoting DE 59-1 at ¶3(a) (emphasis added)).] Polycon disputes that Section 3(a) “deals only with an express warranty.” [Id. at ¶3.] Section 3(a) defines “Specifications” to include “all specifications[,] drawings, samples, and descriptions given.” [Id. at ¶6 (quoting DE 59-1 at ¶3(a)).] The Parties dispute the list of documents incorporated by the definition of “Specifications,” including whether the “Rotary Outputs” sheet is part of the specifications. [Id. at ¶8.] The Rotary Outputs sheet provided to Polycon by R&B contains figures that predict or promise what the machines will produce in bottles per minute (“BPM”). [Id. at ¶9.] In practice, both machines have underperformed R&B’s promised production. During the one-year Equipment Warranty Period, R&B agreed to the following: (f) If the Equipment fails during the Equipment Warranty period, Seller will (i) at Seller’[s] option and at Seller’s sole cost and expense, repair or replace the Equipment or part that does not conform to the warranty or description herein contained, or refund the purchase price of such Equipment or part, and (ii) at Seller’s sole cost and expense, provide qualified technical consultation by phone, written correspondence or with field service as reasonably necessary to resolve any warranty issue. If Seller requests return of the warranty part, freight costs shall be paid by Seller. Freight costs on warranty parts shipped to the Purchaser shall be prepaid by Seller. [Id. at ¶5 (quoting DE 59-1 at ¶3(f)).] R&B does not dispute that the “successful operation of the Equipment” at Polycon’s facility triggers the Equipment Warranty Period. [DE 283 at ¶30.] However, R&B argues there are other mechanisms that could trigger the Equipment Warranty Period, including Polycon’s acceptance of the machines and then thereafter getting free warranty repairs on the machines. [Id.] The Terms and Conditions of Sale obligated Polycon to make payment for R&B’s machines as follows:

(a) Progress payments shall be required as follows: (1) 30% down payment with purchase order. (2) 30% due after 50% completion of the Equipment. (3) 30% following successful operation of the Equipment at Seller’s facility and prior to shipment. (4) 10% due net 30 days from successful operation of the Equipment at Purchaser’s facility.

[Id. at ¶31 (quoting DE 59-1 at ¶5(a) (emphasis added)).] I emphasize the language “successful operation” in the payment section of the Parties’ agreement because it parrots the language used by the Parties in the warranty section of the agreement set out above. In its First Amended Complaint, Polycon alleged R&B breached the Section 3(a) express warranty in the following ways: 55. R & B breached its express warranty because the 4/11 and the 8/16 machines were each defective as designed, engineered and installed. Both the 4/11 and 8/16 are defective in materials and workmanship, and the 8/16 is not “new”. Further, to date, neither has ever been successfully operated in accordance with the Specifications. Neither machine has operated on a regular basis nor consistently produced products conforming to the specifications.

56. R & B has further breached its express warranty by failing or refusing to perform all work on each machine in a professional and workmanlike manner according to best industry standards and practices.

57. R & B has further breached its express warranty by supplying a 4/11 and an 8/16 blow molding machine which do not meet the manufacturing output that Polycon required and which R & B represented each of the machines would meet.

[DE 281 at ¶10 (quoting DE 39 at ¶¶55–57).] Polycon also pleaded the following breach of contract claim: 49. R & B has breached its Agreements with Polycon by failing to design, engineer, manufacture, deliver and install a 4/11 blow molding machine and an 8/16 blow molding machine that conforms to the Agreements the parties have entered into.

50. R & B’s failure to supply machines which conform to the Agreements caused direct damages to Polycon which include, but are not limited to, lost profits which R & B knew was the basis of the Agreements with R & B.

[Id. at ¶11 (quoting DE 39 ¶¶49–50).] Polycon and R&B dispute whether Polycon alleged specific machine defects in support of its breach of contract claim. [Id. at ¶12.] Polycon complained to R&B that the machines Polycon purchased had not achieved “successful operation” at least as early as March 2018. [Id.

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

Polycon Industries Inc v. R & B Plastics Machinery, LLC, (N.D. Ind. 2025).

Polycon Industries Inc v. R & B Plastics Machinery, LLC (Polycon Industries Inc v. R & B Plastics Machinery, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Goodman v. National Security Agency, Inc.
621 F.3d 651 (Seventh Circuit, 2010)
Johnson v. Scandia Associates, Inc.
717 N.E.2d 24 (Indiana Supreme Court, 1999)
Springer v. Durflinger
518 F.3d 479 (Seventh Circuit, 2008)
Kelly v. Smith
611 N.E.2d 118 (Indiana Supreme Court, 1993)
Zawistoski v. Gene B. Glick Co., Inc.
727 N.E.2d 790 (Indiana Court of Appeals, 2000)
Perry v. Gulf Stream Coach, Inc.
814 N.E.2d 634 (Indiana Court of Appeals, 2004)
Nelson v. Marchand
691 N.E.2d 1264 (Indiana Court of Appeals, 1998)
Town of Plainfield v. Paden Engineering Co.
943 N.E.2d 904 (Indiana Court of Appeals, 2011)
Baker Hughes Proc & Pipel Svc v. UE Compression, L
938 F.3d 661 (Fifth Circuit, 2019)