Span East Airlines, Inc. v. Digital Equipment Corp.

486 F. Supp. 831, 1980 U.S. Dist. LEXIS 10731
CourtDistrict Court, D. Massachusetts
DecidedMarch 28, 1980
DocketCiv. A. 76-1425-C
StatusPublished
Cited by10 cases

This text of 486 F. Supp. 831 (Span East Airlines, Inc. v. Digital Equipment Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Span East Airlines, Inc. v. Digital Equipment Corp., 486 F. Supp. 831, 1980 U.S. Dist. LEXIS 10731 (D. Mass. 1980).

Opinion

MEMORANDUM

CAFFREY, Chief Judge.

This matter came before the Court for consideration of the following motions:

1) Defendants’ Motion for Leave to Reargue their Motion to Dismiss as a Motion for Summary Judgment and for Leave to File Supplemental Answers.

2) Defendants’ Request for Certification of the Court’s Denial of Defendants’ Motion to Dismiss for Failure to Pay Costs.

*833 3) Defendant Digital de Puerto Rico’s Motion for Summary Judgment as to Count I.

4) Defendants’ Joint Motion for Summary Judgment as to Count II.

5) Plaintiff’s Motion to Amend its Complaint.

Defendants’ Motion for Leave to Reargue Their Motion to Dismiss as a Motion for Summary Judgment And for Leave to File Supplemental Answers

This action was commenced on January 21, 1976 and answers were filed by the defendants May 4,1976. The issue of plaintiff’s capacity to sue was not raised by those answers.

On July 31, 1978 defendants filed a motion to dismiss pursuant to Fed.R.Civ.P. 41(b) arguing that there was no duly authorized representative of the corporate plaintiff authorized to maintain this action. That motion was heard by another judge of this Court (Freedman, J.). Notwithstanding his belief that the issue was not properly raised by a motion under rule 41(b) Judge Freedman considered the defendants’ arguments and in his order of October 9, 1979 stated:

“[T]his court is satisfied by the documentation supplied by Span East, consisting of the minutes of a meeting of its board of directors, that Paul V. Scuderi, as president is authorized to represent the corporation.”

Less than two weeks later defendants filed their motion for leave to file supplemental answers pursuant to Fed.R.Civ.P. 15. The supplemental answers which defendants seek to file in this case set forth events which allegedly occurred between March 1976 and May 1978 on the basis of which defendants seek to raise the defense of the plaintiff’s lack of capacity. The gist of the allegations set forth in the proposed supplemental answers is that the plaintiff corporation is without capacity to prosecute this action because it has no validly elected officers or directors.

Defendants move for summary judgment on the basis of the supplemental answers and support these with affidavits, various responses to discovery motions and the deposition of Paul Scuderi. However despite the difference in the procedure followed by the defendants no evidence is currently before the Court which was not also before Judge Freedman when he issued his order and the arguments of defendants are the same now as those argued at that time. Defendants contend nonetheless that this Court should reconsider the October 9, 1979 order because the issue of plaintiff’s capacity to sue “was not sufficiently considered in Judge Freedman’s Memorandum and Order.”

In the absence of some new arguments or evidence it would be inappropriate for one judge of this Court to reconsider the findings and rulings of another judge of this Court. Such a review is the function of the Court of Appeals for the First Circuit to which defendants may .appeal should they decide to do so at some time in the future. Therefore defendants’ motion for leave to reargue their motion to dismiss as a motion for summary judgment and for leave to file supplemental answers should be denied.

Defendants’ Request for Certification of the Court’s Denial of Defendants’ Motion to Dismiss for Failure to Pay Costs

In the motion to dismiss heard by Judge Freedman defendants also asserted a second basis for dismissal of this action. They argued that dismissal was appropriate because plaintiff had failed to comply with an order to pay attorneys fees and costs. Judge Freedman found that plaintiff’s noncompliance with the order was based on an inability to pay and denied the motion stating “the sanction of dismissal is so severe and operates as such a hardship on a party, it should be utilized only in severe cases and after careful consideration of the alternatives.”

Defendants now seek an opportunity to apply to the Court of Appeals for immediate review of that portion of Judge Freedman’s order.

*834 While it is true that any review of Judge Freedman’s order should- be handled by the Court of Appeals, I am not of the opinion that this is “a controlling question of law as to which there is substantial ground for difference of opinion” and that “an immediate appeal from the order [might] materially advance the ultimate termination of the litigation.” 28 U.S.C. § 1292(b). 1 Certification of an issue by the District Court to the Court of Appeals is not a routine procedure. Indeed there is a distinct federal policy against piecemeal appeals See Switzerland Cheese Assoc., Inc. v. E. Horne’s Market, Inc., 385 U.S. 23, 24-25, 87 S.Ct. 193, 194-95, 17 L.Ed.2d 23 (1966). As a result of the foregoing I rule that defendants’ request for certification of the Court’s denial of defendants’ motion to dismiss for failure to pay costs should be denied.

Defendant Digital de Puerto Rico’s Motion for Summary Judgment as to Count I

The facts viewed in the light most favorable to plaintiff, for purposes of this motion, are as follows:

Plaintiff Span East Airlines, Inc. (hereinafter Span East) is a New York corporation with its principal place of business in Florida.

Defendant Digital Equipment Corporation de Puerto Rico (hereinafter Digital/P.R.) is a Delaware corporation with its principal place of business in Puerto Rico.

In July, 1974 Span East entered into a contract with Digital/P.R. for the carriage of cargo from Puerto Rico to Massachusetts and return. The contract provided for three round trips per week at a minimum consideration of $23,250 per week. In Count I of its complaint plaintiff contends that Digital/P.R. breached that contract and that said breach resulted in damages of $321,000.00 to Span East.

Paragraph 9 of the July 9, 1974 agreement provided in part:

This Agreement may be terminated by either party with or without cause upon the giving of sixty (60) days written notice to the other party.

Marietta M. Ethier, Assistant General Counsel for Digital Equipment Corporation (hereinafter Digital) 2 wrote the following letter to Span East:

September 6, 1974
Gentlemen:

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486 F. Supp. 831, 1980 U.S. Dist. LEXIS 10731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/span-east-airlines-inc-v-digital-equipment-corp-mad-1980.