Riblet Products Corp. v. Starr National

611 N.E.2d 68, 242 Ill. App. 3d 988, 183 Ill. Dec. 215, 1993 Ill. App. LEXIS 458
CourtAppellate Court of Illinois
DecidedMarch 30, 1993
Docket3-92-0422
StatusPublished
Cited by5 cases

This text of 611 N.E.2d 68 (Riblet Products Corp. v. Starr National) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riblet Products Corp. v. Starr National, 611 N.E.2d 68, 242 Ill. App. 3d 988, 183 Ill. Dec. 215, 1993 Ill. App. LEXIS 458 (Ill. Ct. App. 1993).

Opinion

JUSTICE STOUDER

delivered the opinion of the court:

This appeal arises from a final judgment of the circuit court granting summary judgment in favor of counterdefendants Inca Plastics, Inc. (Inca), and Jean Petersburg, executor of the estate of Richard Petersburg, and denying the motion for summary judgment on major issues filed by the counterplaintiff, Dolly Enterprises, Inc., d/b/a Starr National (Dolly). The final judgment order also expressly affirmed all other orders and decisions issued by the court during the proceedings. These other orders included an order granting Inca leave to file an amended complaint substituting Riblet Products Corporation (Riblet) as plaintiff, an order denying Dolly’s motion to realign the parties, an order granting summary judgment in favor of counter-defendants Agri-Plastics, Inc. (Agri-Plastics), and Rae Johnston, and an order granting Riblet’s motion to voluntarily dismiss and striking the counterclaim of Dolly against Riblet. Dolly raises the following issues on appeal: (1) whether it was error for the circuit court to award summary judgment in favor of Inca and Petersburg on the theory that they could only be third-party defendants; (2) whether it was error for the circuit court to deny Dolly’s motion for realignment of the parties; (3) whether the circuit court erred in granting Riblet’s motion for voluntary dismissal; (4) whether the circuit court erred in denying Dolly’s motion for summary judgment on major issues; and (5) whether it was error for the circuit court to grant summary judgment in favor of Johnston and Agri-Plastics and against Dolly.

On October 20, 1986, Inca filed a complaint against Dolly to collect an account receivable for specially manufactured goods. The complaint alleged that on various dates in 1984 and 1985 Dolly ordered plastic flush pan tops from Inca. The flush pans were trays used by livestock producers for the disposal of animal waste. The complaint alleged that with respect to each of these orders, Inca manufactured and delivered the flush pan tops to Dolly and that Dolly accepted them. Inca alleged that Dolly agreed to pay the amount due for each order within 30 days after the receipt of the merchandise, but had so far refused to pay. Inca requested judgment in the amount of $17,830.90, the amount alleged to be due for the products delivered but not paid for.

Dolly’s answer admitted that Inca manufactured the flush pan tops on the various dates, but denied that they were made to Dolly’s specifications. Dolly also denied that it had promised to pay the amount due for each order within 30 days after the receipt of the merchandise and denied that it owed Inca the amount alleged in the complaint.

Dolly further filed a three-count counterclaim. Count I was directed at Inca and alleged that Inca breached the implied warranties of merchantability and fitness for a particular purpose. Count I alleged that prior to November 14, 1984, the flush trays manufactured by Inca and delivered to Dolly met Dolly’s special requirements that the trays not be subject to cracking or leaking when placed in service. However, after November 14, 1984, the trays manufactured by Inca for Dolly began cracking when installed in swine breeding operations by Dolly’s customers. Dolly alleged that they did not become aware of the defective condition of the trays until April of 1985. Dolly further alleged in count I that it had been required to replace flush trays sold to its customers at a cost of $30,000 to Dolly and that in the future it would have to replace an additional 681 trays at a cost of about $128,500. Count I requested judgment against Inca in the amount of $158,000.

Count II of the counterclaim was a complaint for interference with business and was directed against Inca and its president, Richard Petersburg. Count II alleged that Dolly is a manufacturer of plastic flush trays and typically contracts out the plastic molding portion of the production to outside plastic molders, and that, beginning in 1983, Inca was engaged in the molding of the trays for Dolly. It was further alleged that Inca had designed and manufactured the molds to be used in the production of the trays and that Dolly had paid Inca for the design and construction of the molds. Dolly alleged that it owned the molds after they were constructed and paid for, that they had demanded their return after the defective trays were produced, and that Petersburg had refused to return them. Count II alleged that the conduct of Inca and Petersburg was an intentional interference with Dolly’s ownership and possession of the molds and was done intentionally, willfully, and maliciously. Dolly claimed that the conduct of Petersburg and Inca in withholding the molds had caused it damages in the following amounts: $9,302 incurred by Dolly in remanufacturing the molds; $13,500 for additional molds that still need to be replaced; and $326,332.28 in lost gross sales during the period when the molds were being remanufactured. Count II prayed for judgment against Petersburg and Inca in the sum of $349,134.28 and costs of suit, and also requested punitive damages in an appropriate amount.

Count III of the counterclaim was a complaint for intentional interference with business and was directed against Inca, Agri-Plastics, and Rae Johnston. Count III alleged that Agri-Plastics is a business started by Rae Johnston in about 1984, and that prior to starting that business, Rae Johnston was Agri-Products manager of Inca. Dolly alleged that, in or about November of 1984, Inca and Johnston caused the plastic being used for the manufacture of Dolly’s flush trays to be changed, and that the trays manufactured after the change have been defective. Apparently forgetting that it had already alleged that Rae Johnston started Agri-Plastics in 1984, Dolly alleged that Johnston formed a company known as Agri-Plastics in 1985. Dolly further alleged that soon after the change in plastic, Johnston left Inca and entered into business as Agri-Plastics, engaging in the manufacture of flush trays in direct competition with Dolly. Dolly alleged that Inca, Agri-Plastics, and Johnston were under a duty to refrain from wrongful interference with Dolly’s right to operate its business, business relationships, business expectancies, good will, and existing and anticipated economic advantage. Dolly alleged that Inca, Agri-Plastics, and Johnston violated that duty intentionally, maliciously, and in bad faith by committing one or more of the following acts: (1) knowingly and intentionally changing the plastic without notice to Dolly; (2) knowingly and intentionally changing the plastic knowing that it would cause Dolly’s products to be defective; (3) knowingly and intentionally changing the plastic at a time when one or more of them was planning to go into business in direct competition with Dolly; and (4) knowingly and intentionally engaging in the manufacture and sale of flush trays in order to capture and appropriate Dolly’s good will, business expectancies, business relationships and customers. In count III, Dolly prayed for judgment in the amount of $566,301.68 and costs of suit and asked that punitive damages be assessed in an appropriate amount.

Inca moved to dismiss all three counts of the counterclaim on the grounds that each of the counts stated more than one cause of action, in violation of section 2 — 603(b) of the Code of Civil Procedure (the Code) (735 ILCS 5/2 — 603(b) (West 1992)).

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Cite This Page — Counsel Stack

Bluebook (online)
611 N.E.2d 68, 242 Ill. App. 3d 988, 183 Ill. Dec. 215, 1993 Ill. App. LEXIS 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riblet-products-corp-v-starr-national-illappct-1993.