Sharp Electronics Corp. v. Lodgistix, Inc.

772 F. Supp. 540, 1991 U.S. Dist. LEXIS 11744, 1991 WL 160740
CourtDistrict Court, D. Kansas
DecidedAugust 1, 1991
DocketCiv. A. No. 89-1063-T
StatusPublished
Cited by3 cases

This text of 772 F. Supp. 540 (Sharp Electronics Corp. v. Lodgistix, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharp Electronics Corp. v. Lodgistix, Inc., 772 F. Supp. 540, 1991 U.S. Dist. LEXIS 11744, 1991 WL 160740 (D. Kan. 1991).

Opinion

MEMORANDUM AND ORDER

THEIS, District Judge.

This matter is before the court on the motion of plaintiff (“Sharp”) for partial summary judgment on the issue of liability (Doc. 30). This is a diversity action for breach of contract.

I. BACKGROUND

The dispute concerns certain purchase orders placed with plaintiff that were allegedly made by defendant (“Lodgistix”) through defendant’s agent — Preferred Technologies, Inc. (“Preferred”). Throughout late 1987 and early 1988, Preferred was developing a converter box to be installed in hotel rooms that provided pay-for-view television and in-room checkout services. This was known as the “TV Mate” project and was Preferred’s only major project. The president of Preferred was Christie Tyler. The senior buyer for Preferred from September 1987 through January 1988 was Lori Yavorsky. The executive vice president of defendant was Jim Lew.

Defendant and Preferred executed an asset purchase agreement on March 8, 1988, whereby defendant agreed to acquire certain assets of Preferred. It is disputed whether a merger of defendant and Preferred occurred before this date. During the time frame of October 1987 through December 1987, Yavorsky had been working with defendant on the TV Mate project. Yavorsky became an employee of defendant as its senior buyer on February 1, 1988.

The specific issue presented in this motion concerns the scope of Yavorsky’s authority to contract on the behalf of defendant with plaintiff for two purchase orders, one of which was placed before Yavorsky officially became defendant’s senior buyer on February 1, 1988, and the other after she assumed this position with defendant. The first purchase order was for 10,000 base band tuner kits (“tuner kits”) and the second was for 10,000 remote control units, both of which were to be used in the TV Mate project.

[542]*542Unless otherwise qualified, the following facts are either conceded or not specifically controverted.

1. In October 1987, Lodgistix sent its purchase order forms and stationery to Preferred. Thereafter, Preferred began making purchases on Lodgistix’s purchase orders. Copies of correspondence relating to the purchase orders, as well as the purchase orders themselves, were sent to defendant’s accounting department. (Plaintiff’s statement of facts, 114).

2. No written procedures existed regarding limitations on Preferred’s use of defendant’s purchase order forms or regarding whose approval Yavorsky had to obtain to make purchases on defendant’s behalf. There is evidence, however, that Yavorsky had met with defendant’s purchasing manager early in the relationship to discuss these matters. There is conflicting evidence regarding Yavorsky’s understanding of the need for prior approval by defendant. (Plaintiff’s statement of facts, Doc. 31, ¶¶ 5, 6; Defendant’s statement of facts Doc. 33, 115).

3. Yavorsky negotiated the purchase of the tuner kits with Dan Troutt, an employee of Impaq Sales Company, which was the authorized agent of plaintiff.

4. Troutt has testified that at the relevant times of the subject purchase orders, Yavorsky had represented that Preferred had already been purchased by defendant. Troutt believed that Innvision (Preferred’s trade name) was part of Lodgistix. (Defendant’s statement of facts, Doc. 33, H 7; Plaintiff’s reply, Doc. 38, at 3).

5. Troutt sent Yavorsky a letter dated November 23, 1987, quoting on behalf of plaintiff the price of the tuner kits to be used in the TV Mate project. This quote also stated: “Delivery is 90 to 120 days ARO,” which meant that plaintiff would be able to deliver within 90 to 120 days after the purchase order. (Plaintiff’s statement of facts, Doc. 31, ¶ 8).

6. In a memorandum dated November 24, 1987, Yavorsky notified Jim Lew of Lodgistix of Preferred’s desire to purchase from plaintiff a quantity of 51,000 tuner kit units. This memorandum also informed Jim Lew that “[i]n the event of cancellation, we would be liable for all units scheduled in the 120-day window from the date of cancellation.” Yavorsky has stated that her understanding of the agreement was that “if we were commit to cancel the order today, we would be already committed to accept shipment on the product scheduled out from 120 days from today, assuming all of the product was scheduled to ship by sea.” (Plaintiff’s statement of facts, Doc. 31, If 9).

7. Jim Lew did not agree with the proposed purchase quantity of 51,000 units and instructed Yavorsky to order no more than 10,000 units.

8. During this same time, Lodgistix provided to plaintiff, through Impaq, certain financial information, which demonstrated Lodgistix’s creditworthiness.

9. On December 3, 1987, Lori Yavorsky sent a cover letter and purchase order on Lodgistix letterhead to Impaq Sales Company. This order was for a quantity of 10,000 units, and it requested delivery according to the following schedule: 1,000 units on March 3, 1988; 3,000 units on April 1, 1988; 5,000 units on April 15, 1988; and 1,000 units as “safety stock” for which no delivery date was scheduled. (Appendix “G” and “I” to plaintiff’s memorandum in support of motion). The terms requested by Yavorsky are that the tuners be shipped “FOB: Destination” to InnVision at Richardson, Texas and billed to Lodgistix in Wichita, Kansas. The purchase order also states: “Please confirm the above back to me. If you have any questions, please call.” The letter indicates that copies were sent to Jim Lew of Lodgistix and Chris Tyler of Preferred. Yavorsky also sent a facsimile of the cover letter to Jim Lew. The cover sheet of the facsimile message states: “Jim — Please get back to me today if you have any issue with the attached.” (Appendix “H” to plaintiff’s memorandum in support of motion); (Plaintiff’s statement of facts, Doc. 31, II12).

10. On December 17, 1987, Lew wrote Yavorsky and Tyler, stating in part:

[543]*543I had spoken with Lorie about the Sharp tuner order which she was able to reduce to a 10,000 order for the time being. Realizing that there is a 4 month lead time on these tuners, both George and I understand that we need to have inventory on order and being shipped to us. My only concern in the present schedule is the close proximity of receipt of 10,000 units within a 45 day period. Not only do we have to pay for them, but it is questionable whether we need that many do [sic] begin production with given our current lack of sales forecasting. The production schedule at this time is excessive until we have better sales forecast information.
I would like to have someone tell me whether I have listed all of the purchase orders or not____ Additionally, the 10,-000 tuners must be spread out.

(Appendix “J” to plaintiff's motion in support).

11. By letter dated December 18, 1987,1 plaintiff “acknowledge[d] the receipt and acceptance of” the December 3 purchase order sent by Yavorsky. This letter stated: “Deliveries are as requested unless stated otherwise in the acutual [sic] delivery column.” (Appendix “L” to plaintiffs motion in support).

12. By cover letter and purchase order on Lodgistix letterhead dated February 11, 1988, Yavorsky placed an order with plaintiff for 10,000 remote control transmitters. The hard copy of this purchase order was sent to plaintiff, and a copy would have been forwarded to defendant. (Plaintiffs statement of facts, Doc. 31, 111116, 17).

13.

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Cite This Page — Counsel Stack

Bluebook (online)
772 F. Supp. 540, 1991 U.S. Dist. LEXIS 11744, 1991 WL 160740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharp-electronics-corp-v-lodgistix-inc-ksd-1991.