Siskin Enterprises, Inc. v. W.B. Stoddard, Jr., Inc.

147 F. Supp. 2d 1125, 2001 U.S. Dist. LEXIS 8726, 2001 WL 708708
CourtDistrict Court, D. Utah
DecidedJune 15, 2001
DocketNo. 2:99-CV-819 G
StatusPublished
Cited by3 cases

This text of 147 F. Supp. 2d 1125 (Siskin Enterprises, Inc. v. W.B. Stoddard, Jr., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Siskin Enterprises, Inc. v. W.B. Stoddard, Jr., Inc., 147 F. Supp. 2d 1125, 2001 U.S. Dist. LEXIS 8726, 2001 WL 708708 (D. Utah 2001).

Opinion

ORDER RE: ATTORNEY FEES AND NON-TAXABLE COSTS

J. THOMAS GREENE, District Judge.

Following a jury trial from February 20 to March 5, 2001, plaintiff filed a Motion for an Award of Attorney’s Fees and NonTaxable Costs, which is opposed by defendant.

- FACTUAL BACKGROUND

Plaintiffs claim for attorney fees is based on paragraph 15(g) of the Wholesale Distribution Agreement (“Agreement”) between the parties, which provides:

Attorney’s Fees. In the event of default under any of the terms and conditions of this Agreement, the defaulting party agrees to pay in addition to any sum which may be awarded by a court of competent jurisdiction, the costs incurred by the non-defaulting party in enforcing this Agreement, including reasonable attorney’s fees. (Emphasis added.)

The Agreement also provides a non judicial procedure to terminate the Agreement where a party is in default and fails to cure specific outlined defaults. (Paragraph 10)

Plaintiff filed a declaratory judgment action seeking a declaration by this court that defendant was in default and had materially breached the Agreement. Plaintiff alleged that defendant had engaged in “unfair or immoral trade practices” consisting of alleged “thefts of warranties” which had been sold previously to .automobile dealerships. The alleged conduct by defendant had been discovered in 1998, but plaintiff Siskin continued to do business with defendant Stoddard, and did not exercise its right to terminate until one [1127]*1127day after this lawsuit was commenced in October 1999.

Plaintiffs first commenced litigation against defendant in 1995, Siskin Enterprises v. W.B. Stoddard, Inc., et al., 2:95CV796S (Removed from state court— filed July 1, 1995). In that previously filed lawsuit plaintiff moved to amend its complaint to include the additional events of default and grievances which had been discovered in 1998, and later sought to obtain a ruling that such constituted evidentiary facts supporting the claim for relief in that case as opposed to independent substantive claims. Magistrate Judge Boyce, to whom the case had been referred by District Judge David Sam, ultimately rejected plaintiffs attempts to include those alleged defaults in that case by way of amendment or otherwise. In colloquy with the court concerning the matter, and in explanation as to why plaintiff deliberately had chosen or elected not to exercise its right to terminate the agreement, counsel for plaintiff stated:

And, Your Honor, this is probably a good time to comment on the fact that my client made a considered decision to take the high road in this case, to file a declaratory judgment action and continue to sell to Stoddard, continue to do business with Stoddard, not just terminate it and — instead of doing that, it said, look, we will send a notice of default, we’re not satisfied with your re-spbnse, we’ll file a lawsuit and we’ll let the finder of fact determine whether in fact there is a disagreement between us,

Transcript in case 95cv796, March 17,1999 at p. 41. This matter later was reiterated to Judge Boyce and also presented to this court. Counsel for defendant pointed out that plaintiff Siskin had made a “considered decision,” relied upon by defendant, to “continue to sell to Stoddard and ... not exercise its right to terminate” even though for many months plaintiff had “full knowledge and awareness” of the claimed defaults and misconduct which were set forth in the present declaratory judgment action before this court. Transcript in case 95cv796, November 1, 1999 at p. 11.

Notwithstanding plaintiffs “election not to proceed with the termination” in the prior case, plaintiff unilaterally terminated the defendant’s distributorship based substantially on the same alleged events of default which had been well known and argued in the prior case. As a result of the termination action taken by plaintiff, Judge Boyce stayed the prior litigation pending resolution of the “propriety of the termination of the Stoddard Distributorship in the matter pending before Judge Greene.” Order in case 95c796 dated December 10,1999.

Plaintiff served defendant a Notice of Default dated September 17, 1999, setting forth the substance of the aforesaid alleged events of default. This notice also set forth plaintiffs intention to terminate the agreement.1 On October 18, 1999, plaintiff filed this action for declaratory relief requesting a declaration of default and breach of contract but making no request for declaratory relief concerning ter[1128]*1128mination. The next day, on October 19, 1999, without any reference to the lawsuit filed the previous day, plaintiff terminated the Wholesale Distribution Agreement by serving a notice of termination upon defendant.2 Defendant responded by filing a counterclaim for wrongful termination and extensive discovery was conducted on the merits of the counterclaim.

The jury ultimately determined that material defaults by defendant had occurred, that such had not been cured and that defendant’s counterclaim had not been established by a preponderance of the evidence. This court rendered findings and conclusions and adopted the findings by the jury in its Special Verdict. In its Findings, the court acknowledged and declared that the termination actions taken by plaintiff had been shown to have been based upon sufficient right to terminate, and acknowledged that the jury had determined that defendant’s counterclaim for wrongful determination had failed, resulting in no cause of action. The, form of Judgment prepared by the Clerk of this court was entered the same day as the court’s Findings and Conclusions. Although the court directed the Clerk’s Office to prepare a proposed form of Judgment, it had not been fully reviewed or approved by the court prior to entry. However, it sets forth in substance the results of the litigation and no motion to alter or amend has been filed.

ISSUE

The essential issue before the court is whether the declaratory judgment cause of action by plaintiff Siskin constitutes an “enforcing” of the Wholesale Distribution Agreement notwithstanding the unilateral and self operative action by plaintiff in terminating the agreement apart from the litigation.

ANALYSIS

I.

By definition, “enforcement” constitutes “the act of putting something such as law into effect; the execution of a law; the carrying out of a mandate or command.” Black’s Law Dictionary 528 (6th ed.1991). To terminate is “to put an end to; to make cease; to end,” and “termination of a conditional contract” means “... doing away with existing agreement under agreed terms and consequences.” Black’s Law Dictionary 1471 (6th ed.1991). See e.g. Stalnaker v. M.L.D., 939 P.2d 407 (Alaska [1129]*11291997) (holding under this definition that a disability of an employee did not exist at the time he was terminated from employment.)

The plain and unambiguous meaning of the word “enforcing” in the Agreement is to mandate compliance with existing contractual obligations. The plain and unambiguous meaning of the word “terminate” in the Agreement is to end, do away with and abrogate the contract.

II.

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147 F. Supp. 2d 1125, 2001 U.S. Dist. LEXIS 8726, 2001 WL 708708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/siskin-enterprises-inc-v-wb-stoddard-jr-inc-utd-2001.