Poorman v. TTG, Inc.

CourtDistrict Court, W.D. Missouri
DecidedMay 3, 2022
Docket4:21-cv-00211
StatusUnknown

This text of Poorman v. TTG, Inc. (Poorman v. TTG, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poorman v. TTG, Inc., (W.D. Mo. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI WESTERN DIVISION BRAD POORMAN, JBP VENTURES, ) LLC, ) ) Plaintiffs, ) ) Case No. 4:21-cv-00211-RK v. ) ) TTG, INC., ) ) Defendant. ) ORDER DENYING IN PART AND GRANTING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT Before the Court, is Defendant TTG, Inc.’s (“TTG” or “Defendant”) motion for summary judgment (Doc. 26.) The motion is fully briefed. (Docs. 27, 33, 34, 38.) After careful consideration and for the reasons discussed below, the motion is DENIED in part and GRANTED in part. Specifically, summary judgment in favor of Defendant is denied as to Plaintiffs’ Counts I and II, and is granted as to Counts III and IV. Background1 This case arises out of a contract relationship between JBP Ventures, LLC, which is a company in the business of sales, marketing, and business development, and TTG, which is a company in the business of manufacturing and selling finished goods. Plaintiff Brad Poorman (“Poorman”) (jointly with JBP Ventures, LLC, “Plaintiffs”) has nearly 40 years of experience in the textile industry, including starting, owning, and operating three different companies in the textile industry. (Doc. 33, ¶ 1, 4.) Poorman commonly operates his businesses under names including ATAG and JBP Ventures. (Id. at ¶ 4.) JBP Ventures, LLC was formed in Colorado in 2013, and the formation expired in 2015. (Id. at ¶ 5.) Since then, Poorman has conducted business as a sole proprietorship. (Id.) JBP Ventures has always been owned and operated entirely by Poorman. (Id.) Prior to the formation of the contract that is the subject of this case, there was an agreement between ATAG USA, of which Poorman was the

1 Except where otherwise noted, these facts are taken from the parties’ statements of uncontroverted material facts. The Court has omitted facts properly controverted, facts asserted that are immaterial to the resolution of the pending motion, facts asserted that are not properly supported by admissible evidence, legal conclusions, and argument presented as an assertion of fact. principal, and TTG that governed the relationship between Poorman and TTG until February of 2019. (Id. at ¶¶ 8-9.) In February of 2019, TTG and “JBP Ventures, a Delaware LLC,” (Doc. 27-2 at 1) entered into a Consulting and Representative Agreement (the “Agreement”). (Doc. 27, ¶ 5.) Subsequent and unrelated to the Agreement, Poorman started a Delaware entity called “JBP, LLC” in October of 2020. (Doc. 33, ¶ 7.) The parties do not dispute that they entered the Agreement or that the terms are as reflected in Exhibit 2 attached to Defendant’s summary judgment motion (Doc. 27-2) and excerpted in the briefing on this motion. The parties’ dispute in this case centers on the proper interpretation of the Agreement, in particular as to when and/or how commissions were earned under the Agreement, and whether Poorman can properly assert any rights under the Agreement in his individual capacity. The Agreement states it “is among: (i) TTG Inc. (“TTG”), (ii) JBP Ventures, a Delaware LLC (“JBP LLC”) and (iii) solely for purposes of Section 9.6 [(terminating the prior agreement between TTG and ATAG USA)], ATAG USA, a Delaware corporation (“ATAG USA”).” (Doc. 27-2 at 1.) Article 1 of the Agreement sets forth definitions, providing: 1.1 “Customer” shall mean any manufacturer or company that purchases Apparel Products from TTG in the Territory. 1.2 “Apparel Products” shall mean any and all N-Aire treated laminates and treated films for Apparel, any and all Consumer and Protective Apparel, and designated apparel ePTFE Films as identified and prioritized from time to time in writing by TTG and / or added to this Agreement by an addendum signed by both Parties. The initial Apparel Products hereunder are identified in the attached Schedule “A.” 1.3 “Territory” shall mean North America and Korea unless otherwise agreed to in writing by TTG and added to this Agreement by an addendum signed by both Parties for a specific new Apparel Product. . . . . 1.5 “Net Selling Price” shall mean money or any other consideration, exclusive of sales taxes, custom duties, value added taxes, transportation and insurance, if any, and net of any returns and allowances, collected by TTG in connection with the sale or other disposition of Products. All pricing for films and new innovations will be predetermined by TTG. JBP LLC will get paid for each region a 5% commission for Products sold at full price. Any deductions or discounts will result in a commensurate reduction in commission. 1.6 “Party” shall mean JBP LLC or TTG. 1.7 “Parties” shall mean JBP LLC and TTG. (Id. (emphasis in original).) Article 2 of the Agreement, in relevant part, gives JBP LLC only the right “to represent TTG as an agent with respect to the solicitation of orders for the sale of N-aire ® and certain agreed upon ePTFE films solely for Apparel to Customers in the Territory,” and establishes that JBP LLC “shall be deemed an independent contractor” and “[i]n no event shall JBP LLC or its agents be deemed employees of TTG.” (Id. at 2.) Article 3, “Sales to Customers,” provides, inter alia: 3.2 Fulfillment. Following receipt and acceptance by TTG of a written order for Apparel Products from a Customer within the Territory, TTG shall ship the ordered Apparel Products to such Customer. No order shall be deemed binding on TTG until accepted by TTG, and TTG reserves the right to reject any order or to cancel the same or any part of it after acceptance, for credit or any other reason whatsoever deemed by TTG to be sufficient. TTG shall use commercially reasonable efforts to inform JBP LLC of the status of the fulfillment of all orders processed through JBP LLC. (Id.) Article 4 is titled “Business Procedures” and provides, in relevant part: 4.1 Commissions. TTG shall pay to JBP LLC a commission of five percent (5%) of the Net Selling Price of Apparel Products placed by JBP LLC to Customers in the Territory or to third party manufacturers for sale into the Territory. JBP LLC’s commissions shall be payable by means mutually agreed to by the Parties the fifteenth (15th) day of the month following which TTG receives payment by each Customer. If payment received by TTG is for less than the full amount of that billed, TTG shall prorate JBP LLC’s commission on that amount actually received by TTG. (Id. at 3.) Article 6, “Term and Termination,” provides, in relevant part: 6.1 Dissolution. Notwithstanding the rights granted to JBP LLC under this Agreement, TTG[] may terminate this Agreement for no cause on ninety (90) days’ written notice to JBP LLC. If this Agreement is terminated under the provisions of this Section 6.1, then (i) TTG shall pay to JBP LLC those payments as provided in Section 6.4 herein. . . . . 6.4 Commissions Payable. In the event of the expiration or termination of this Agreement pursuant to Sections 6.1 and 6.2, TTG shall pay to JBP LLC in accordance with the terms of this Agreement, (i) all unpaid commissions earned by JBP LLC as of the termination date, and (ii) all commissions for N-aire / ePTFE for existing customers over the 6 months following termination. (Id. at 4.) Tim Nestor, the CEO of TTG, testified in deposition that TTG’s normal process as to the purchase and production of goods was that it would prepare a quote for a customer; the customer would accept the quotation; the customer would provide a purchase order that would include the product, the requested delivery date, and any product specifications; TTG would then accept the order, produce the order, ship the order, invoice the order, and then collect payment on the order. (Doc. 27 at ¶ 17.) On or about October 21, 2019, TTG notified JBP LLC, by letter to Brad Poorman, JBP LLC, of the termination of the Agreement effective January 21, 2020. Thus, the six-month runout period provided for in Section 6.4 of the Agreement would end on July 21, 2020. (Id. at ¶ 23; Doc.

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

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Dunn Industrial Group, Inc. v. City of Sugar Creek
112 S.W.3d 421 (Supreme Court of Missouri, 2003)
American Civil Liberties Union/Eastern Missouri Fund v. Miller
803 S.W.2d 592 (Supreme Court of Missouri, 1991)
Bethel v. Sunlight Janitor Service
551 S.W.2d 616 (Supreme Court of Missouri, 1977)
Howard v. Turnbull
316 S.W.3d 431 (Missouri Court of Appeals, 2010)
County Asphalt Paving, Co. v. Mosley Construction, Inc.
239 S.W.3d 704 (Missouri Court of Appeals, 2007)
Erslon v. Vee-Jay Cement Contracting Co.
728 S.W.2d 711 (Missouri Court of Appeals, 1987)
Busch & Latta Painting Corp. v. State Highway Commission
597 S.W.2d 189 (Missouri Court of Appeals, 1980)
Parker v. Pulitzer Publishing Co.
882 S.W.2d 245 (Missouri Court of Appeals, 1994)
Morgan Wightman Supply Co. v. Smith
764 S.W.2d 485 (Missouri Court of Appeals, 1989)
R & R Land Development, L.L.C. v. American Freightways, Inc.
389 S.W.3d 234 (Missouri Court of Appeals, 2012)
Lapponese v. Carts of Colorado, Inc.
422 S.W.3d 396 (Missouri Court of Appeals, 2013)
State ex rel. Pinkerton v. Fahnestock
531 S.W.3d 36 (Supreme Court of Missouri, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Poorman v. TTG, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/poorman-v-ttg-inc-mowd-2022.