Primarque Products Co., Inc. v. Williams W. & Witt's Prod. Co.

988 F.3d 26
CourtCourt of Appeals for the First Circuit
DecidedFebruary 12, 2021
Docket19-1463P
StatusPublished
Cited by3 cases

This text of 988 F.3d 26 (Primarque Products Co., Inc. v. Williams W. & Witt's Prod. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Primarque Products Co., Inc. v. Williams W. & Witt's Prod. Co., 988 F.3d 26 (1st Cir. 2021).

Opinion

United States Court of Appeals For the First Circuit

Nos. 19-1463, 19-1484

PRIMARQUE PRODUCTS CO., INC.,

Plaintiff, Appellant / Cross-Appellee,

v.

WILLIAMS WEST & WITTS PRODUCTS COMPANY d/b/a INTEGRATIVE FLAVORS,

Defendant, Appellee / Cross-Appellant.

APPEALS FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Timothy S. Hillman, U.S. District Judge]

Before

Thompson and Barron, Circuit Judges.*

Andrew Lawlor, with whom Fedele and Murray, P.C. was on brief, for Appellant/Cross-Appellee. Rodney L. Lewis, with whom Polsinelli, P.C. was on brief, for Appellee/Cross-Appellant.

* Judge Torruella heard oral argument in this matter and participated in the semble, but he did not participate in the issuance of the panel's opinion in this case. The remaining two panelists therefore issued the opinion pursuant to 28 U.S.C. § 46(d). February 12, 2021 BARRON, Circuit Judge. The appeal and cross-appeal at

issue here stem from litigation in the District of Massachusetts

that followed the termination, without advance notice, of a thirty-

nine-year business relationship between a company that

manufactured and supplied soup base products and a company that

distributed them. Following a five-day trial, the jury awarded

the distributor $255,000 in total damages for its Massachusetts-

law breach of contract and tortious interference with business

relations claims against the manufacturer, although the District

Court denied the distributor's motion for prejudgment interest on

those damages. The District Court also granted summary judgment

to the manufacturer on the distributor's claim against it under

Chapter 93A of the Massachusetts Consumer Protection Act, Mass.

Gen. Laws ch. 93A ("Chapter 93A"), and to the manufacturer on its

counterclaim for breach of contract under Massachusetts law, for

which the District Court awarded the manufacturer $97,843.22 in

damages, plus prejudgment interest. The distributor now appeals

from various of the District Court's pre- and post-verdict rulings,

while the manufacturer cross-appeals. We reverse in part and

vacate in part in the distributor's appeal, and we affirm in the

manufacturer's cross-appeal.

- 3 - I.

A.

The following facts, which were supportably found by the

District Court both at summary judgment and in its rulings on

certain post-trial motions, are undisputed on appeal. Primarque

Products Co. ("Primarque"), the appellant, is a Massachusetts-

based distributor of food products, including soup base products.

Williams West & Witts Products Co. d/b/a Integrative Flavors

("WWW"), the cross-appellant, is an Indiana-based manufacturer and

supplier of soup base products that is incorporated in Illinois.

Primarque and WWW have conducted business with each another since

1976.

Primarque and WWW briefly entered into written

distribution agreements in, respectively, 1987 and 1990, but, by

1993, each of those agreements had terminated. After the period

in which those agreements were in effect, however, the parties

continued to do a large amount of business with each other.

Their repeated transactions during this period involved

Primarque as a distributor sending a purchase order to WWW

detailing the desired soup base type, quantity, cost, method of

shipping, and delivery location; WWW as a manufacturer and supplier

filling the order and invoicing Primarque; Primarque paying WWW

for what it had been invoiced; and Primarque reselling the products

that it purchased from WWW to a variety of retail customers. The

- 4 - parties' transactions during this period also involved what the

parties referred to as the "Drop Ship Arrangement," pursuant to

which WWW shipped soup base products directly to certain retail

customers known as the "Drop Ship Customers" that had purchased

soup base products through Primarque.

The Drop Ship Arrangement relieved Primarque, as a

distributor, of the hassle of receiving, storing, and re-shipping

the soup base products; and this practice, in turn, made

Primarque's pricing for those products more competitive with its

retail customers. WWW, however, did not during this period

directly solicit business from Drop Ship Customers. Moreover, if

those customers made inquiries with WWW about directly purchasing

its soup base products, WWW referred them to Primarque. Primarque,

for its part, did not solicit business from customers buying soup

base products from WWW directly.

Primarque did sell other suppliers' soup base products

to certain of its retail customers, but it still was WWW's largest

purchaser of those products. WWW, in turn, was Primarque's largest

supplier of them. As an indication of the scale of the business

that the two parties did with each other, in 2014, Primarque

- 5 - purchased approximately $1,313,175.59 worth of soup base products

from WWW.1

The events that precipitated the dispute that gives rise

to these appeals began in May of 2014, when Primarque, without

notifying WWW, started meeting with competitors of WWW about their

supplying Primarque with "replacement" soup base products for

Primarque to sell to its retail customers. Primarque signed

memoranda of understanding with two of those competitors, Major

Foods and Eatem. As Major Foods and Eatem developed replacement

products for Primarque to distribute, Primarque began relying on

them to supply it with some of the soup base products that it had

previously relied on WWW to supply.

On March 9, 2015, WWW reviewed its sales numbers and

identified certain downward trends related to its business with

Primarque. The next day, WWW sent an e-mail to Jack Barron,

Primarque's owner and president, in which it inquired whether

Primarque's business was down generally or whether it was

transitioning some of its business away from WWW. Barron replied:

"[a] combination of both."

Two days later, on March 12, 2015, WWW notified Primarque

that it would no longer be selling its products to Primarque,

1 This was about a $60,000 increase from calendar year 2013, when Primarque purchased $1,254,674.56 worth of soup base products from WWW.

- 6 - effective that day. On the same day, WWW informed the Drop Ship

Customers that Primarque was no longer distributing WWW products

and that these customers could now obtain soup base products

directly from WWW at lower prices. WWW thereafter began selling

soup base products directly to some of the Drop Ship Customers.

B.

In response to WWW's actions, Primarque filed suit in

Massachusetts state court on March 19, 2015. WWW then removed the

case to the United States District Court for the District of

Massachusetts based on diversity jurisdiction.

Primarque's complaint asserted four claims against WWW

under Massachusetts law: breach of contract (Count I), promissory

estoppel (Count II), tortious interference with business relations

(Count III), and a violation of Chapter 93A (Count IV). Primarque

sought damages based on lost profits from sales that it alleged

that it would have made to the Drop Ship Customers in the absence

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