Rolscreen Company, an Iowa Corporation v. Pella Products of St. Louis, Incorporated, a Missouri Corporation

64 F.3d 1202, 33 Fed. R. Serv. 3d 765, 1995 U.S. App. LEXIS 24701
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 5, 1995
Docket94-3910
StatusPublished
Cited by61 cases

This text of 64 F.3d 1202 (Rolscreen Company, an Iowa Corporation v. Pella Products of St. Louis, Incorporated, a Missouri Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rolscreen Company, an Iowa Corporation v. Pella Products of St. Louis, Incorporated, a Missouri Corporation, 64 F.3d 1202, 33 Fed. R. Serv. 3d 765, 1995 U.S. App. LEXIS 24701 (8th Cir. 1995).

Opinion

DIANA E. MURPHY, Circuit Judge.

After a jury returned its verdict for Rol-screen Company (Rolsereen) during the first *1206 phase of a bifurcated trial, the district court 1 dismissed the remaining counterclaims brought by Pella Products of St. Louis, Inc. (Products), one of Rolscreen’s distributors, and entered judgment for Rolscreen. Products appeals from that judgment. We affirm.

I.

Rolscreen, which manufactures windows, doors, and skylights, has its headquarters in Pella, Iowa. Products, a Missouri corporation located in St. Louis, became an independent distributor for Rolscreen in 1968. For the next fifteen years, Rolscreen and Products did business without a written agreement. In 1983, Rolscreen executed a distribution agreement with each of its distributors around the country, including Products. This case grows out of the end of the parties’ relationship in 1992.

Products was a successful distributor for many years and sold Rolscreen products both in eastern Missouri and southwestern Illinois, but its market share declined in the late 1980s. Claiming to be unhappy with the declining sales performance, Rolscreen sent a letter to Products on March 8,1991, outlining the market share and profit goals it expected the distributor to reach. The letter indicated that Products’ distribution agreement would be terminated on December 1,1991 if it could not meet those objectives.

Walter Blaine, the owner of Products since 1968, believed the goals set by Rolscreen were unrealistic and began looking for someone to buy his company. Meanwhile, Rol-screen wrote Products on November 16 to note that the termination date was only two weeks away, but wrote again on November 26 to extend that date until March 1, 1992. The November 26 letter explicitly stated that the existing distribution agreement would continue to apply until the termination and that the extension would permit Rolscreen to gather all data on the distributor’s performance through November 30 and would give Walter Blaine more time to sell his business.

Shortly after granting the extension, Rol-screen filed this case in the Southern District of Iowa seeking a declaratory judgment that its conditional termination of Products would be proper under the distribution agreement. Two months later in February 1992, Products in turn filed a complaint in the Eastern District of Missouri seeking damages and a preliminary injunction. Products also moved to dismiss the case filed by Rolscreen or to have it transferred to Missouri; these motions were denied.

As the March 1 termination date approached, Products was continuing negotiations with a potential buyer, and Rolscreen granted another extension with an indefinite termination date. On April 23 when no sale had been consummated, Rolscreen wrote again, setting a termination date of April 30, 1992. 2 In order to obtain more time to complete the sale, Products planned to seek a temporary restraining order to prevent Rol-screen from terminating the agreement. In response, Rolscreen agreed to extend the termination date to May 7, 1992, and also committed to fill Products’ orders until the sale closed if a sale agreement were signed by May 7. Products and its purchasers signed a sale agreement on May 2, 1992. The sale closed on July 28, and the purchasers became the new distributor for Rol-screen.

The litigation became consolidated in the Southern District of Iowa. Products’ case in Missouri was dismissed in October 1992, on the grounds that Rolsereen’s was filed first. *1207 One month later, Products filed counterclaims in this case for recoupment, breach of contract, tortious interference, promissory estoppel, prima facie tort, and violation of the Illinois Franchise Disclosure Act.

In September 1993, the district court dismissed Rolscreen’s complaint and Products’ counterclaims for promissory estoppel and tortious interference. Since there was no longer any relationship between the parties, the complaint for a declaratory judgment was moot. The district court then decided in June 1994 to bifurcate the trial on the remaining counterclaims. The first phase would focus on whether Rolscreen had terminated the distribution agreement with Products and whether Products was a franchisee under the Illinois Franchise Disclosure Act.

After several days of testimony in August 1994, a jury decided that Rolscreen had not terminated the agreement and that Products was not a franchisee. Rolscreen then moved to dismiss the remaining counterclaims. After Products made an oral proffer of the evidence it would present in the second phase, the court concluded that its showing was insufficient and granted Rolscreen’s motion to dismiss. Judgment was entered in Rolscreen’s favor, and Products’ motion for judgment as a matter of law or a new trial was denied.

Although the background facts are largely undisputed, the parties interpret them differently. Products believes that Rolscreen wrongfully terminated the agreement in April 1992. It believes that its performance was not unsatisfactory so that Rolscreen was not entitled to use the agreement’s conditional termination provision. Products also asserts that Rolscreen had improper motives for terminating the agreement, including a desire to award the St. Louis distributorship to a former Rolscreen vice president and a dislike for Kenneth Blaine, Walter Blaine’s choice as his successor at Products. Rol-screen contends that the relationship between the parties was not terminated within the meaning of the contract, but rather ended when the sale of Products was concluded in July 1992. It believes that the issuance of the conditional notice of termination was proper under the agreement and was based on legitimate business concerns.

II.

Products first challenges several decisions of the district court made before trial. Products argues that the court erred when it granted summary judgment to Rolscreen on the tortious interference and promissory es-toppel counterclaims and when it denied its motions to transfer the case to Missouri.

Products’ counterclaims for tortious interference and promissory estoppel are based on the assertion that Rolscreen had approved Products’ succession plan. Products says it prepared a written plan in 1982 to provide that Kenneth Blaine would become its president upon Walter Blaine’s retirement or death. The plan was sent to Rolscreen it maintains, but neither party could locate the document. In his deposition Walter Blaine testified that a Rolscreen officer orally approved the plan, saying it was the best he had seen. Products asserts that this approval amounted to a promise by Rolscreen that the distributorship would continue indefinitely, barring some completely unforeseen problem. 3 Products claims it based the expansion of its business on the understanding that Kenneth Blaine would succeed his father.

Both sides view Missouri law as controlling. Under it the elements of a tor-tious interference claim are:

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Bluebook (online)
64 F.3d 1202, 33 Fed. R. Serv. 3d 765, 1995 U.S. App. LEXIS 24701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rolscreen-company-an-iowa-corporation-v-pella-products-of-st-louis-ca8-1995.