Target Media Partners Operating Co. v. Specialty Marketing Corp.

177 So. 3d 843, 2013 WL 4767022, 2013 Ala. LEXIS 103
CourtSupreme Court of Alabama
DecidedSeptember 6, 2013
Docket1091758
StatusPublished
Cited by14 cases

This text of 177 So. 3d 843 (Target Media Partners Operating Co. v. Specialty Marketing Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Target Media Partners Operating Co. v. Specialty Marketing Corp., 177 So. 3d 843, 2013 WL 4767022, 2013 Ala. LEXIS 103 (Ala. 2013).

Opinions

On Second Application for Rehearing

PER CURIAM.

This Court’s no-opinion order of affir-mance of April 19, 2013, is withdrawn, and the following is substituted therefor.

Target Media Partners Operating Company, LLC (“Target Media”), and Specialty Marketing Corporation d/b/a Truck Market News (“Specialty Marketing”), both publishers of magazines directed to long-haul truck drivers and to the truck-driving industry, have litigated a commercial-contract dispute since 2007 in which each party alleged breach-of-contract claims against the other. Specialty Marketing, a plaintiff in the trial court, also alleged fraudulent-misrepresentation and promissory-fraud claims against Target [848]*848Media and Ed Leader, Target Media’s vice president of trucking, and sought punitive damages in addition to compensatory damages. The litigation culminated in a jury trial that lasted several days. The jury returned a verdict in favor of Specialty Marketing on its breach-of-contract and promissory-fraud claims against Target Media, in favor of Leader on the promissory-fraud claim against him, in favor of Specialty Marketing on its fraudulent-misrepresentation claim against Target Media and Leader, and in favor of Target Media on its breach-of-contract counterclaim against Specialty Marketing. Target Media and Leader appeal from that aspect of the judgment entered on the jury verdict in favor of Specialty Marketing on its claims against Target Media and Leader. Specialty Marketing does not appeal the judgment insofar as it found in favor of Target Media on Target Media’s counterclaim. We affirm the trial court’s order denying Target Media’s and Leader’s post-judgment motion, but we remand the cause to the trial court to review the punitive-damages award.

I. Factual Background and Procedural History

Target Media, which sometimes does business as “Target Distribution Partners” or “Target Media Partners,” publishes a number of magazines that contain advertisements for items of interest to truck drivers and the trucking industry, such as driver recruitment and sales of commercial trucks and products used by truck drivers. It distributes the magazines nationally to truck stops, rest stops, and similar locations frequented by truck drivers. These magazines are free of charge. Target Media has a major distribution hub for these magazines in Oxford.

Specialty Marketing also publishes a free magazine directed to the truck-driving industry called Truck Market News that is published monthly and that contains advertisements for products such as new and used commercial trucks, parts, and trailers. Specialty Marketing distributes Truck Market News to many of the same locations where Target Media distributes its magazines. Specialty Marketing is a family business headquartered in Dallas, Texas, that has been in operation for over 35 years. It is run by Terry W. Davis and his sister, Kathleen Daniels, who have continued the business started by their father and who together own all the stock in Specialty Marketing.

In 2000, Target Media purchased two businesses in Calhoun County, Pollard Publishing and J.B. Scott, that published free magazines for distribution to truck drivers. Target Media then employed Gordon Adams and his brother Wallace Adams, both of whom had formerly worked for Pollard Publishing. After the purchases, Leader relocated to Oxford where, in addition to heading the trucking division of Target Media, he was also in charge of the distribution hub the company operated in Oxford.

In the fall of 2002, Jack Humphreville, Target Media’s vice president of acquisitions, contacted Davis to discuss whether Davis and Daniels would be interested in selling Specialty Marketing to Target Media. When Davis and Daniels decided against selling Specialty Marketing, Davis and Humphreville began to discuss a business venture between the companies pursuant to which Target Media would distribute Truck Market News for Specialty Marketing. Davis testified that Humphre-ville told him he felt that Specialty Marketing could increase its advertising revenue by 20% annually if it used Target Media’s distribution services. Humphre-ville put Davis in touch with Gordon Adams, who was at that time Target Media’s distribution manager in Oxford, and [849]*849Davis and Gordon Adams negotiated a contract they executed on November 21, 2002 (“the 2002 distribution contract”). However, Gordon Adams testified that he had to obtain the approval of Ed Leader, the vice president of trucking, of the terms of the 2002 distribution contract before it could be executed.

The contract stated:
“Target Distribution Partners (TDP) is pleased to bid' on delivery of Truck Market News. TDP has carved out a niche in the highly competitive truck stop delivery market because of our High Response Delivery System. As such, TDP can help you maximize your advertising, marketing, and magazine movement needs by:
“Hand Delivery and display nationwide
“Documentation that includes proof of delivery, returned (non-picked up) magazines, store stamps and photos upon request
“Delivery twice a month
“Guaranteed prominent display at each location
“Use of Target Media Partners Circulation, Sales and Distribution program (TMPCSD) for hand delivery locations only
“We have priced our delivery services of Truck Market News on a per stop basis. This price includes all slotting fees and hand delivery. This price also includes distribution in our racks and four quad boxes. The price does not include any costs associated with shipments of your product to our warehouses. This will also afford you the same cost even when your magazine adds more pages. We believe that this all-inclusive pricing structure is easier to understand than a structure based on price per pound plus various add-ons.
‘Tour price structure is identified on Exhibit A attached hereto.
“The above is contingent on your gaining approval, if necessary, from each Truck Stop chain or location. We will be glad to assist you in gaining these approvals.
“As a partner with TDP, you will be able to use our proprietary TMPCSD software program to further enhance the benefits of our High Response Delivery System. With the help of the information provided by TMPCSD, you are able to adjust various parameters (such as the number of [magazines] placed at individual locations and the return factor) that influence the draw algorithm, which in turn helps you improve or optimize the number of [magazines] that you print. This can result in savings or better utilization of your printing dollars. This service is unmatched by any other truck stop distribution company.
“Truck Market News agrees to supply TDP’s warehouses with the magazines in a form and time acceptable to TDP. TDP’s delivery cycle begins on the 28th and 15th of each month and all shipments must be in our warehouses by those dates.
“Truck Market News agrees to pay for all deliveries and services provided for or paid for by TDP within 10 days upon receipt of invoice. We anticipate a monthly billing cycle.

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Target Media Partners Operating Co. v. Specialty Marketing Corp.
177 So. 3d 843 (Supreme Court of Alabama, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
177 So. 3d 843, 2013 WL 4767022, 2013 Ala. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/target-media-partners-operating-co-v-specialty-marketing-corp-ala-2013.