R.A., Inc. v. Anheuser-Busch, Inc.

556 N.W.2d 567, 71 A.L.R. 5th 775, 1996 Minn. App. LEXIS 1362, 1996 WL 689477
CourtCourt of Appeals of Minnesota
DecidedDecember 3, 1996
DocketC1-96-779
StatusPublished
Cited by14 cases

This text of 556 N.W.2d 567 (R.A., Inc. v. Anheuser-Busch, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.A., Inc. v. Anheuser-Busch, Inc., 556 N.W.2d 567, 71 A.L.R. 5th 775, 1996 Minn. App. LEXIS 1362, 1996 WL 689477 (Mich. Ct. App. 1996).

Opinion

OPINION

KALITOWSKI, Judge.

R.A., Inc., et al., (appellants) challenge the determinations of the district court that: (1) respondent Anheuser-Busch, Inc. (A-B) was entitled to summary judgment on appellants’ claims of tortious interference with existing and prospective contracts; and (2) appellants lacked standing to bring a claim under the Minnesota Beer Brewers and Wholesalers Act (Act).

FACTS

A-B is a brewer of beers that sells its products through a network of authorized wholesalers. Capitol City Distributing Co., Inc. (Capitol City) was an exclusive wholesaler of A-B products.

R.A., Inc. (RA) is a corporation formed to purchase Capitol City. Richard Arrell is a shareholder and director of RA. Arrell was the general manager of Capitol City and had an agreement to serve as RA’s president and chief executive officer. Paul Schnoebelen is also a director of RA. Schnoebelen had a written employment contract to serve as RA’s chief financial officer. Plaintiff Park-view Management, Inc. (Parkview) is a corporation wholly owned by Schnoebelen that had a written contract to provide management services to RA. Nonparty Beechwood Partners, L.P. (Beechwood) is the other RA shareholder. Parkview is the general partner of Beechwood.

A-B had a written agreement with Capitol City entitled the “Anheuser-Busch, Inc. Wholesaler Equity Agreement” (Equity Agreement). The Equity Agreement set forth the terms and conditions governing Capitol City’s wholesaler relationship with A-B. It contained A-B’s procedures for evaluating proposed changes in wholesaler ownership and the standards A-B applied when deciding whether to approve a proposed sale. Under the Equity Agreement, A-B had the right to terminate the agreement if Capitol City sold, transferred, or assigned its right to wholesale A-B’s products without first obtaining A-B’s written consent. If A-B approved a sale of Capitol City, then A-B would either enter into a new Equity Agreement with the purchaser, or would permit Capitol City to assign its rights under the existing A-B/Capitol City Equity Agreement.

The Equity Agreement listed factors that A-B might take into consideration in evaluating a prospective purchaser, including financial capability, business experience, moral character, and personality. Under the Equity Agreement, Capitol City was obligated to provide A-B with appropriate information to evaluate the potential purchaser.

The Equity Agreement also stated that no third parties, such as prospective purchasers, had claims against A-B. None of the appellants were a party to the Equity Agreement, *569 and all the parties agree that appellants were not third-party beneficiaries to the contract.

Richard Arrell and Paul Schnoebelen, on behalf of a corporation to be formed, entered into a letter of intent with the shareholders of Capitol City, agreeing to purchase substantially all of Capitol City’s assets, including its rights under the Equity Agreement. Ultimately, the letter resulted in an Acquisition Agreement between the parties that was conditioned upon obtaining A-B’s approval of RA as a buyer.

Thereafter, A-B was sent a Request for Approval of Proposed Change of Ownership from Capitol City owners Michael Groppoli and Lauro DiSanto. Over the course of the next year, A-B made several requests for information necessary to complete its analysis of RA, and Capitol City responded to AB’s requests.

After completing its analysis, A-B informed Capitol City that it was denying approval of the sale of Capitol City to RA. The disapproval letter stated that A-B was concerned that RA would be unable to comply with the Equity Agreement marketing and capital expenditure requirements while servicing its debt; RA would breach several loan covenants that would place it in default; and that RA would have other financial difficulties. In addition, A-B was concerned that many of the provisions of the R.A. Inc. Shareholders’ Agreement imposed serious and unacceptable constraints on the management and business operations of RA. The letter also noted a concern about the veto power given to the limited partners, suggesting the provision indicated that the limited partners lacked confidence in Arrell’s ability to manage the business.

Subsequently, appellants commenced this lawsuit against A-B alleging: (1) A-B tor-tiously interfered with RA’s contract to purchase Capitol City; (2) A-B tortiously interfered with the contract between Parkview and RA; (3) A-B tortiously interfered with Arrell’s economic expectancy in his relations with RA; (4) A-B tortiously interfered with Sehnoebelen’s employment contract with RA; and (5) A-B violated the Act.

The district court dismissed, for failure to state a claim, appellants’ claim against A-B for violation of the Act. The court said that because appellants were not licensed wholesalers, they lacked standing to bring suit under the Act. In response to cross-motions for summary judgment, the district court granted A-B’s motion for summary judgment on appellants’ remaining claims.

ISSUES

1. Did the district court err in granting A-B summary judgment on appellants’ claims of tortious interference with contract?

2. Did the district court err in granting A-B summary judgment on appellants’ claims of tortious interference with prospective contractual relations?

3. Did the district court err in determining that appellants did not have standing to bring a claim against A-B for violation of the Act?

ANALYSIS

On appeal from summary judgment, a reviewing court determines whether any genuine issues of material fact exist and whether the district court erred in its application of the law. Wartnick v. Moss & Barnett, 490 N.W.2d 108, 112 (Minn.1992). In doing so, the court views the evidence in the light most favorable to the nonmoving party. State by Beaulieu v. City of Mounds View, 518 N.W.2d 567, 571 (Minn.1994). However, a party cannot rely on speculation or general assertions to create a genuine issue of material fact. Nicollet Restoration, Inc. v. City of St. Paul, 533 N.W.2d 845, 848 (Minn.1995). “Summary judgment is appropriate when a party ‘fails to make a showing sufficient to establish the existence of an element essential to that party’s case.’ ” Iacona v. Schrupp, 521 N.W.2d 70, 72 (Minn.App.1994) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986)). No deference need be given to the district court’s application of the law. Frost-Benco Elec. Ass’n v. Minnesota Pub. Utils. Comm’n, 358 N.W.2d 639, 642 (Minn.1984.)

*570 I.

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Bluebook (online)
556 N.W.2d 567, 71 A.L.R. 5th 775, 1996 Minn. App. LEXIS 1362, 1996 WL 689477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ra-inc-v-anheuser-busch-inc-minnctapp-1996.