Polytec, Inc. v. Utah Foam Products, Inc.

439 So. 2d 683
CourtSupreme Court of Alabama
DecidedSeptember 30, 1983
Docket81-530, 81-556
StatusPublished
Cited by23 cases

This text of 439 So. 2d 683 (Polytec, Inc. v. Utah Foam Products, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Polytec, Inc. v. Utah Foam Products, Inc., 439 So. 2d 683 (Ala. 1983).

Opinion

ON REHEARING

The original opinion issued in this case is withdrawn and the following is entered as the Court's opinion in this appeal and cross-appeal.

This case presents complex and novel procedural and substantive questions. The case reaches us in the following posture. Utah Foam Products, Inc., a supplier of foam roofing products, sued Polytec, Inc., an Alabama corporation which had applied a foam roof to a building in Birmingham, on Polytec's account due.1 Polytec filed a permissive counterclaim regarding a transaction in Mobile and added counterdefendants, alleging that Utah Foam and others had wrongfully deprived Polytec of business. The trial court granted Utah Foam's motion for summary judgment on the complaint and certain motions to dismiss the counterclaim. Polytec filed an amended counterclaim, of which the trial court dismissed two counts and denied motions to dismiss or strike a third count. Polytec appeals from the dismissal of the two counts and Utah Foam cross-appeals from the failure to dismiss the other count.

The counterclaim gives substantially the following statement of facts which are to be taken as true for the purpose of ruling on a motion to dismiss:

Polytec was in the business of selling and applying waterproofing materials, primarily urethane foam. In March 1980 Utah Foam sold Polytec a machine for applying foam and a quantity of foam. Polytec paid in advance for the machine but purchased the foam on credit. Later that month, Gerald F. Chadbourne, a salesman for Utah Foam, met Phil Cashion, Polytec's president, and James C. Taylor, a Polytec representative, in Birmingham. Chadbourne demonstrated the use of the machine by applying foam to the roof of a building, apparently pursuant to a Polytec contract with the building owners.

According to Polytec, Chadbourne discussed with Cashion and Taylor the prospect of "Polytec becoming a distributor of the products of Utah Foam in the southeastern United States." Polytec used a process whereby the foam was coated after application with a waterproofing material called Miracote, made by Miraco, Inc., a Pennsylvania company that Polytec represented. During the discussions with Chadbourne, Cashion talked on the telephone with a person at Miraco and obtained an agreement for Miraco to underwrite half of the costs of testing the use of Miracote with Utah Foam's urethane foam.

After the meeting in Birmingham, Polytec conducted a presentation at the temporary Mobile City Hall to demonstrate the applications of urethane foam and Miracote, allegedly at the request of Michael A. Guarino. Guarino was identified in the counterclaim as "an employee of the City of Mobile and advisor with respect to the Mobile Aerospace Industrial Complex (herein `the *Page 685 Complex'), owned by the City of Mobile and leased to Teledyne [Continental Motors]." Buildings at the Complex were damaged by Hurricane Frederic and Teledyne contracted with J.O. Lockridge2 Company, a Texas-based firm, to perform repair work. Those attending Polytec's demonstration included Guarino; John Binford, a Lockridge employee and spokesman; Roderick Slater, an engineering and architectural consultant to the city; and some twenty other employees of Teledyne, the City of Mobile, and the Complex.

Following the presentation, Binford, Slater, and a Teledyne representative accompanied Taylor to Birmingham to inspect the recently installed urethane roof. Cashion telephoned Chadbourne, reaching him in the state of Washington, and spoke of Polytec's interest in obtaining a contract with Teledyne. Chadbourne flew to Mobile on April 20, 1980.

Cashion, Taylor, and Chadbourne met for approximately three hours with Binford, Slater, and others at the Complex on April 21. The Polytec representatives and Chadbourne discussed the proposed Teledyne contract over breakfast the following morning. Cashion then drove Chadbourne to the Complex where Chadbourne attended a meeting to which Binford had invited him.

Polytec alleges that the next day, Chadbourne informed Cashion "that the Teledyne people were going to repair the buildings with new built-up roofs and that Polytec should forget about getting a contract to put on a urethane foam roof." On April 24, Cashion drove Chadbourne to Birmingham, where they talked with officials about roofing repairs to the civic center. Chadbourne left Birmingham by airplane that afternoon.

The factual allegations of the counterclaim conclude:

"12. On or about May 7, 1980, Chadbourne returned to Mobile and telephoned Cashion informing him that Utah Foam had sold two machines to Lochridge for it to use in applying urethane foam roofs to the buildings in the Complex.

"13. On approval from the City of Mobile, Lochridge and Utah Foam contracted with Teledyne and repaired the roofs of the buildings in the Complex with urethane foam after Chadbourne personally applied a new urethane foam roof to the residence of Guarino. . . ."

The original counterclaim, filed on March 2, 1981, named Utah Foam, Chadbourne, Lockridge, Binford, Guarino, and fictitious parties as counterdefendants. Count one alleged that the counterdefendants "conspired to injure Polytec and Cashion by depriving them of the opportunity for doing the roofing work for Teledyne at the Complex and the profit that would have been made from doing the work." Count two alleged that the counterdefendants "impliedly represented" that foam for the Complex would be acquired through Polytec, intending "to induce Polytec and Cashion to rely upon the implied representation." Count two alleged further elements of a fraud claim and stated that the acts constituted a violation of Code 1975, §§ 6-5-101, -102, and -103.

The trial court granted Utah Foam's motion for summary judgment on March 16, 1981, awarding Utah Foam the full amount sought in the complaint. On April 2, Utah Foam moved to dismiss the counterclaim. On the same date, Lockridge and Binford moved to dismiss the counterclaim or, in the alternative, for a more definite statement. Guarino filed a motion to dismiss on April 9.

On June 18, 1981, the trial court entered an order granting Utah Foam's motion to dismiss and an order granting Guarino's motion to dismiss. No order was ever entered regarding Lockridge and Binford's motion. On June 26, Polytec filed a motion for the court to set aside the orders of June 18 and to overrule both motions. The trial court denied this motion on October 21, 1981.

On November 3, 1981, Polytec filed an amended counterclaim containing three *Page 686 counts, numbered three, four, and five. Count three alleged that Utah Foam impliedly agreed to award Polytec the contract for roofing the Complex and agreed to make Polytec its exclusive distributor for the southeast. Counts four and five alleged conspiracy and fraud claims similar to those in counts one and two of the original counterclaim. Utah Foam filed a motion to strike the amendment to the counterclaim. Guarino filed a motion to dismiss the amended counterclaim.

On February 1, 1982, the trial court granted Utah Foam's motion to strike and Guarino's motion to dismiss as to counts four and five of the amended counterclaim and denied the motions as to count three. On March 4, 1982, the court entered a final judgment on counts four and five under Rule 54 (b), A.R.Civ.P., as to all counterdefendants. Polytec appealed from this order and Utah Foam cross-appealed from the failure to dismiss count three of the amended counterclaim.

In the opinion issued on May 27, 1983, this Court dismissed the appeal as untimely.

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439 So. 2d 683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/polytec-inc-v-utah-foam-products-inc-ala-1983.