Precise Innovations, LLC v. Aerospace Engineering & Support, Inc.

CourtDistrict Court, D. Idaho
DecidedJuly 9, 2024
Docket4:21-cv-00420
StatusUnknown

This text of Precise Innovations, LLC v. Aerospace Engineering & Support, Inc. (Precise Innovations, LLC v. Aerospace Engineering & Support, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Precise Innovations, LLC v. Aerospace Engineering & Support, Inc., (D. Idaho 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF IDAHO ___________________________________ ) PRECISE INNOVATIONS, LLC, ) ) Plaintiff, ) ) v. ) ) AEROSPACE ENGINEERING AND ) SUPPORT, INC., ) RUSTY ORAM, ) JOHN DOES I-X, ROE ENTITIES I-X, ) CIVIL ACTION ) No. 4:21-00420-WGY ) Defendants. ) ___________________________________) ) AEROSPACE ENGINEERING AND ) SUPPORT, INC., and ) RUSTY ORAM, ) ) Counterclaimants, ) ) v. ) ) PRECISE INNOVATIONS, LLC, ) ) Counterclaim Defendant. ) ___________________________________)

YOUNG, D.J.1 July 9, 2024

FINDINGS OF FACT AND RULINGS OF LAW I. INTRODUCTION Precise Innovations, LLC (“Precise”), is an Idaho company specializing in computer numerical control machining and manufacturing. Pl.’s Proposed Findings of Fact and Conclusions of Law (“Pl.’s FOF/COL”) ¶¶ 1-4, ECF No. 117. Aerospace

1 Of the District of Massachusetts, sitting by designation. Engineering and Support, Inc. (“Aerospace”), is a Utah corporation that manufactures parts for aircraft, primarily used by government agencies. Id. ¶¶ 6-7. Rusty Oram (“Oram”) is a former shareholder of Aerospace and was Aerospace’s Director of Operations. Id. ¶¶ 8-9.

This case concerns a claim and counterclaim that arose out of the parties’ course of dealing. See Compl., ECF No. 1-2; see Countercl., ECF No. 6. Precise filed its complaint for breach of contract on June 17, 2021, seeking damages for several unpaid invoices due for machining work performed. Def.’s Proposed Findings of Facts and Conclusions of Law (“Def.’s FOF/COL”) ¶ 1, ECF No. 117; see also Compl., ECF No. 1-2. Aerospace filed a counterclaim for tortious interference with a contract, alleging both that Precise used improper means to obtain Aerospace’s contract with Hurricane Aerospace Solutions (“Hurricane”), and that three former Aerospace employees improperly used information obtained, while working for Aerospace, for Precise’s

benefit in order to compete against Aerospace. Countercl. ¶¶ 6- 41, ECF No. 6. On February 16, 2023, the Court allowed in part and denied in part Precise’s motion for summary judgment. Order, ECF No. 85. The Court ruled that a contract existed between Precise and Aerospace, that the unpaid invoices constituted a breach of this contract, and that Oram is obligated under a personal guaranty, leaving for trial the issue of the amount of damages to be awarded. Id. at 2. In addition, the Court denied summary judgment as to the tortious interference with contract claim involving Hurricane. Id. at 3. The Court held a three-day bench trial and made brief

findings of fact and rulings of law in summary fashion at the conclusion of trial, reserving the right to enter more detailed findings and rulings. Minute Entry, ECF No. 121. On April 4, 2024, the Court entered a judgment in favor of Precise in the amount of $201,126.04 and against Aerospace concerning its counterclaim. Judgment, ECF No. 126. On March 12, 2024, Precise filed a motion for allowance of attorneys’ fees. Pl.’s Mot. Attorneys’ Fees, ECF No. 122. The parties fully briefed the issue. Pl.’s Mem. Supp. Mot. Attorneys’ Fees (“Pl.’s Mem.”), ECF No. 122-1; Def.’s Opp’n Pl.’s Mot. Attorneys’ Fees (“Def.’s Opp’n”), ECF No. 123; Pl.’s Reply Def.’s Opp’n Mot. Attorneys’ Fees (“Pl.’s Reply”), ECF No. 127.

The Court now makes the following more extensive findings of facts and rulings of law. II. FINDINGS OF FACTS A. The Balance Owed to Precise and Possible Deductions Precise and Aerospace have conducted business together for several years and entertained a good working relationship. Pl.’s FOF/COL ¶ 13. Precise machined parts as requested by Aerospace and invoiced Aerospace after completing the work and delivering the parts. Id. ¶ 14. Aerospace used these machined parts in fulfillment of contracts with other companies. Id. ¶ 15. Aerospace has had financial difficulties in the last few

years and eventually started to fall behind on the amounts due to Precise before it completely stopped paying invoices due. Id. ¶¶ 22-28, 55. 1. The Balance Owed to Precise from Unpaid Invoices At trial, Ryan Burton (“Burton”), founder and managing member of Precise and a former employee of Aerospace, testified that the aggregate amount owed to Precise by Aerospace, specific to unpaid invoices, was the principal balance of $154,959.23, as reflected on Plaintiff’s Trial Exhibit 18. Id. ¶¶ 12, 35-37. Burton testified, without contradiction, that the document reflected the dates and original amounts of all unpaid invoices starting in March 2019, the dates and amounts of payments received, and the amounts outstanding. Id. ¶ 35.

2. The Purchase of the Lathe At trial, Lacey Remke (“Remke”), Aerospace’s president, testified regarding an email she sent to Burton on October 2, 2020, where she wrote that Aerospace was selling Precise a lathe2 at the price of $30,000.00. Id. ¶¶ 11, 40. Remke also testified that Aerospace planned to deduct $14,453.58 from this $30,000 purchase price to account for both $5,000 worth of work Precise completed for Aerospace and $9,453.58 in accrued

interest from Aerospace's unpaid invoices from January 2018 through March 2019. Pl.’s Tr. Ex. 14. The Court finds, by a fair preponderance of the evidence, this email to be the final and accurate iteration of the agreement between Precise and Aerospace concerning the sale of the lathe and that Precise therefore still owes Aerospace the sum of $15,546.42. 3. The Alleged Defects Aerospace argues that the sum due to Precise ought be reduced because it was invoiced for products that were either not received or defective. Pl.’s FOF/COL ¶ 53. The Court finds the record insufficient to determine whether any defects existed or whether any products were not received by Aerospace. The Court therefore finds that the sum due to Precise cannot be

reduced by Aerospace’s claim of defective or missing products.

2 A lathe is “a machine in which work is rotated about a horizontal axis and shaped by a fixed tool.” Lathe - Definition, Merriam-Webster, https://www.merriam- webster.com/dictionary/lathe (last visited on July 2, 2024). 4. The Interest Rate Aerospace has had a cash flow and profitability problem within the last few years, resulting in a recurring difficulty paying vendors, including Precise. Pl.’s FOF/COL ¶¶ 22-23. Aerospace fell behind on the payment of invoices due to Precise, and both companies had multiple discussions about Aerospace’s

unpaid balance and ways to get it paid. Id. ¶¶ 28-29. There was a direct relationship between what Aerospace could borrow each month against its line of credit and what showed on Aerospace’s financials. Id. ¶ 30. Aerospace could not obtain financing for its ongoing purchasing needs with such large accounts payable on its books. Id. Precise agreed to allow Aerospace to move the balance it owed to Precise from short-term to long-term debt, which allowed Aerospace to qualify for ongoing financing and credit with its bank. Id. ¶ 31. On December 23, 2019, Precise and Aerospace signed a “Business Agreement and Personal Guaranty”. Pl.’s Tr. Ex. 1. Precise and Aerospace agreed that Aerospace would pay a 0.007%

interest on unpaid invoices after 60 days. Id. Oram signed a personal guaranty that he would jointly, severally, and unconditionally guarantee to pay and be liable for all obligations due to Precise by Aerospace. Id. The business agreement does not specify whether the interest was to be compounded monthly or annually. The Court finds that Burton drafted the agreement in his capacity as Precise’s managing member, and that the agreement should be construed against Precise according to the general cannon of contract construction. Restatement (Second) of Contracts § 206 (1981); Straub v. Smith, 145 Idaho 65, 69 (2007). The Court finds,

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

Related

Bushi v. Sage Health Care, PLLC
203 P.3d 694 (Idaho Supreme Court, 2009)
Straub v. Smith
175 P.3d 754 (Idaho Supreme Court, 2007)
Mosell Equities, LLC v. Berryhill & Co.
297 P.3d 232 (Idaho Supreme Court, 2013)
Washington Federal Savings v. Van Engelen
289 P.3d 50 (Idaho Supreme Court, 2012)
Idaho First National Bank v. Bliss Valley Foods, Inc.
824 P.2d 841 (Idaho Supreme Court, 1992)
Idaho Lumber, Inc. v. Buck
710 P.2d 647 (Idaho Court of Appeals, 1985)
Minidoka County Ex Rel. Detweiler Bros. v. Krieger
399 P.2d 962 (Idaho Supreme Court, 1965)
Samuel v. Hepworth, Nungester & Lezamiz, Inc.
996 P.2d 303 (Idaho Supreme Court, 2000)
Brower v. EI DuPont De Nemours and Co.
792 P.2d 345 (Idaho Supreme Court, 1990)
Brooks v. Gigray Ranches, Inc.
910 P.2d 744 (Idaho Supreme Court, 1996)
Bybee v. Isaac
178 P.3d 616 (Idaho Supreme Court, 2008)
Vanderford Co., Inc. v. Knudson
165 P.3d 261 (Idaho Supreme Court, 2007)
Willie v. Board of Trustees
59 P.3d 302 (Idaho Supreme Court, 2002)
Great Plains Equipment, Inc. v. Northwest Pipeline Corp.
36 P.3d 218 (Idaho Supreme Court, 2001)
Silicon International Ore, LLC v. Monsanto Co.
314 P.3d 593 (Idaho Supreme Court, 2013)
Safaris Unlimited v. Mike Von Jones
353 P.3d 1080 (Idaho Supreme Court, 2015)
Keith A. Sims v. Dan S. Jacobson
342 P.3d 907 (Idaho Supreme Court, 2015)
Madrid v. Roth
10 P.3d 751 (Idaho Court of Appeals, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
Precise Innovations, LLC v. Aerospace Engineering & Support, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/precise-innovations-llc-v-aerospace-engineering-support-inc-idd-2024.