Social Enterprise, LLC v. Southern Belle Organics, LLC

CourtDistrict Court, E.D. North Carolina
DecidedSeptember 6, 2022
Docket7:20-cv-00166
StatusUnknown

This text of Social Enterprise, LLC v. Southern Belle Organics, LLC (Social Enterprise, LLC v. Southern Belle Organics, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Social Enterprise, LLC v. Southern Belle Organics, LLC, (E.D.N.C. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA SOUTHERN DIVISION

NO. 7:20-CV-166-FL

SOCIAL ENTERPRISE, LLC, ) ) Plaintiff, ) ) v. ) ORDER ) SOUTHERN BELLE ORGANICS, LLC, ) ) Defendant. )

In this breach of contract action, a handful of requests for relief, some apparent and others veiled, come now before the court. Plaintiff’s motion for summary judgment pursuant to Federal Rule of Civil Procedure 56(a) (DE 15) sits plainly on the docket. Defendant’s late filed opposition papers advance its claim that plaintiff is in breach and judgment should be entered in favor of defendant on the subject contract. (DE 26). Plaintiff moves to strike defendant’s response on account of its lateness, and because defendant’s claimed entitlement to judgment in its response is not a procedurally recognized way to raise that request. (DE 29). Defendant’s response to that motion advances a plea that the court excuse for good cause its late filings. (DE 34). Where plaintiff interprets defendant’s filings as raising new claims in response to its summary judgment motion, if the court is inclined not to strike its response, plaintiff requests that it be allowed to conduct additional discovery. (DE 30).1

1 Plaintiff contends that defendant’s counterclaim as pleaded does not reach losses of certain harvests, actual and potential, and costs replacing those harvests, both of which defendant raises in its embedded request for summary judgment, made subsequent the close of discovery August 30, 2021. STATEMENT OF THE CASE Plaintiff is a New York limited liability company (“LLC”) engaged in distributing agricultural products. Defendant is a North Carolina LLC in the business of growing and selling produce, including, specifically, blueberries. Plaintiff commenced this action September 9, 2020, asserting defendant breached the parties’ “Organic Blueberry Consigned Purchase Agreement”

dated January 10, 2018 (“2018 Agreement”), wherein plaintiff agreed to distribute defendant’s blueberries and provide defendant a loan, and defendant promised to sell its blueberries to plaintiff and pay back that loan. Plaintiff seeks compensatory damages totaling $94,541.86, interest, and attorneys’ fees and costs. Defendant counterclaimed against plaintiff asserting money is owed it under the 2018 Agreement. Plaintiff filed its motion for summary judgment with reliance upon: 1) affidavit of Rafael Goldberg (“Goldberg”), managing member of plaintiff; 2) the 2018 Agreement; and 3) a table purporting to document certain financial transactions between the parties. In its opposition to plaintiff’s motion, defendant has introduced documentary evidence

pertaining to the parties’ earlier, similar business dealings including 1) a previous “Organic Blueberry Consigned Purchase Agreement” between the parties; 2) their promissory note seemingly executed January 20, 2016; 3) defendant’s records of shipments, insurance policies, sales, expenses, revenue and monies owed it; and 4) correspondence between employees of the parties. Defendant relies also upon 1) a press release by the United States Department of Agriculture; 2) correspondence to defendant’s representative from a potential lender; 3) a webpage describing “Actual Production History Yield Exclusion”; and 4) affidavit of Bricklyn W. Rooks (“Rooks”), manager of defendant. In opposition to plaintiff’s motion to strike, defendant also places reliance upon 1) correspondence between counsel; 2) an offer of judgment; and 3) supplemental documentary evidence of the parties’ former, similar business dealings. STATEMENT OF UNDISPUTED FACTS The parties entered into the 2018 Agreement on January 10, 2018, which required

defendant to supply plaintiff with the entire output of blueberries grown for harvest in 2018, 2019, 2020, 2021, and 2022, at two of defendant’s North Carolina-based farms. (Def.’s Opp. Stmt. (DE 24) ¶¶ 2, 4).2 Defendant was obligated to provide at least 300,000 pounds but not more than 2,000,000 pounds of product annually. (Id. ¶ 5). In turn, plaintiff agreed to sell the blueberries and pay defendant the amount received for the sale, minus an eight percent fee if more than 500,001 pounds had been delivered or a nine percent fee if less than 500,000 pounds had been delivered. (Id.). Defendant consented to pay eight cents per pound of blueberries delivered for marketing and developing expenses incurred by plaintiff and another eight cents per pound of blueberries delivered as a “certification premium” for plaintiff’s “Taste Me Do Good”

certification. (Id.). The 2018 Agreement defines the amount owed defendant after these described deductions as the “Net Purchase Price.” (2018 Agreement (DE 16-2) at 5). Plaintiff was required to pay $0.55 per pound of “deliver[ed]” or “pick[ed] up” blueberries within seven days of such as “advance payment.” (Def.’s Opp. Stmt. (DE 24) ¶ 5). It also, under the 2018 Agreement, promised to loan annually $235,000.00 to defendant with an interest rate of eight percent per annum compounded daily, or, upon default, 12% per annum compounded daily.

2 Where a fact asserted in plaintiff’s statement of material facts is undisputed, the court cites to defendant’s responsive statement of facts, where it indicates the fact is admitted, undisputed, or without opposing fact, irrespective of the merits of plaintiff’s argument that defendant’s responsive filings to the motion for summary judgment are untimely. (2018 Agreement (DE 16-2) at 4). The loan was to be distributed during each contract year in installments of $45,000.00 in November, $35,0000.00 in December, $60,000.00 in January, $60,000.00 in February, and $35,000.00 in March.3 (Id.). However, the Net Purchase Price as owed to defendant by plaintiff, rather than go to defendant, was required first to “be applied to the balance due and owing on [the contemporaneously entered promissory note] and any and all”

advance payments made by plaintiff. (2018 Agreement (DE 16-2) at 4).4 The parties agreed that the full amount of the annual loan would “become immediately due and payable in full” “[i]f, upon the yearly anniversary of [January 10, 2018], . . . the [annual loan] . . . is not paid in full” under the payment terms described above. (Id. at 6). Between January 10, 2019, and January 10, 2020, plaintiff disbursed $200,000.00 in nine installments to defendant. (See Def.’s Opp. Stmt. (DE 24) ¶¶ 11-12). The disbursements accrued interest in the amount of $8,599.89. (Id. ¶ 13). The Net Purchase Price for blueberries produced by defendant and sold by plaintiff between January 10, 2019, and January 10, 2020, was $118,893.58. (Id. ¶ 14). Additional interest accrued on the loan and on advance payments between

January 2, 2020, and May 31, 2020, resulting in $11,335.44 in total interest being due as of May 31, 2020. Defendant has not paid any of the $94,541.86 balance allegedly due, calculated as of May 31, 2020.5

3 The 2018 Agreement contradictorily references “four” installments before proceeding to describe five installments during the year.

4 No evidence has been placed in the record of this contemporaneously entered promissory note discussed in the 2018 Agreement, and defendant contends that the only promissory note entered into by the parties was in 2016, coupled with a previous contract. 5 This amount represents the disbursed $200,000.00 less the $118,893.58 Net Purchase Price plus the $11,335.44 in interest and $2,100.00 in incidental costs. COURT’S DISCUSSION A.

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Social Enterprise, LLC v. Southern Belle Organics, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/social-enterprise-llc-v-southern-belle-organics-llc-nced-2022.