T.W.T. Distributing, Inc. v. Johnson Products Co.

966 F. Supp. 2d 576, 2013 WL 4495177, 2013 U.S. Dist. LEXIS 117165
CourtDistrict Court, W.D. North Carolina
DecidedAugust 19, 2013
DocketNo. 3:13-cv-171-RJC-DSC
StatusPublished
Cited by5 cases

This text of 966 F. Supp. 2d 576 (T.W.T. Distributing, Inc. v. Johnson Products Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
T.W.T. Distributing, Inc. v. Johnson Products Co., 966 F. Supp. 2d 576, 2013 WL 4495177, 2013 U.S. Dist. LEXIS 117165 (W.D.N.C. 2013).

Opinion

ORDER

ROBERT J. CONRAD, JR., District Judge.

THIS MATTER comes before the Court on Defendants’ Motion To Dismiss, (Doc. No. 7), the parties’ briefs and exhibits (Doc. Nos. 8; 9; 11), and the Magistrate Judge’s Memorandum and Recommendation (M & R), (Doc. No. 12), recommending that this Court grant Defendants’ Motion in part and deny in part. The parties have not filed objections to the M & R and the time for doing so has expired. Fed. R.CrvP. 72(b)(2).

[578]*578I. BACKGROUND

Neither party has objected to the Magistrate Judge’s statement of the factual and procedural background of this case, and the Court thus adopts the facts as set forth in the M & R.

II. STANDARD OF REVIEW

The district court may assign dispositive pretrial matters pending before the court to a magistrate judge for “proposed findings of fact and recommendations.” 28 U.S.C. § 636(b)(1)(B). The Federal Magistrate Act provides that “a district court shall make a de novo determination of those portions of the report or specific proposed findings or recommendations to which objection is made.” Id. at § 636(b)(1)(C); Camby v. Davis, 718 F.2d 198, 200 (4th Cir.1983). However, “when objections to strictly legal issues are raised and no factual issues are challenged, de novo review of the record may be dispensed with.” Orpiano v. Johnson, 687 F.2d 44, 47 (4th Cir.1982). Similarly, de novo review is not required by the statute “when a party makes general or conclusory objections that do not direct the court to a specific error in the magistrate judge’s proposed findings and recommendations.” Id. “[I]n the absence of a timely filed objection, a district court need not conduct a de novo review, but instead must ‘only satisfy itself that there is no clear error on the face of the record in order to accept the recommendation.’ ” Diamond v. Colonial Life & Acc. Ins. Co., 416 F.3d 310, 315 (4th Cir.2005) (quoting Fed. R.Civ.P. 72 advisory committee’s note).

III. DISCUSSION

Under Rule 72(b) of the Federal Rules of Civil Procedure, a district court judge shall make a de novo determination of any portion of an M & R to which specific written objection has been made. Fed. R. Crv. 72(b). No objection to the M & R having been filed, the parties have waived their right to de novo review of any issue covered in the M & R. Nevertheless, this Court has conducted a full and careful review of the M & R and other documents of record and, having done so, hereby finds that the recommendation of the Magistrate Judge is, in all respects, in accordance with the law and should be approved. Accordingly, the Court ADOPTS the recommendation of the Magistrate Judge as its own.

IV.CONCLUSION

IT IS, THEREFORE, ORDERED that the Magistrate Judge’s M & R, (Doc. No. 12), is ADOPTED and Defendants’ Motion to Dismiss, (Doc. No. 7), is GRANTED in part and DENIED in part. Accordingly:

1. Defendant’s Motion to Dismiss Plaintiffs Claim for Promissory Estoppel is GRANTED.
2. Defendant’s Motion to Dismiss Plaintiffs Claim for Breach of Contract and Negligent Misrepresentation is DENIED.

MEMORANDUM AND RECOMMENDATION

DAVID S. CAYER, United States Magistrate Judge.

THIS MATTER is before the Court on Defendant’s “Motion to Dismiss” (document #7); as well as the parties’ briefs and exhibits. See documents ##8, 9 and 11.

This matter has been referred to the undersigned Magistrate Judge pursuant to 28 U.S.C. § 636(b)(1), and this Motion is now ripe for the Court’s consideration.

Having fully considered the arguments, the record, and the applicable authority, the undersigned respectfully recommends [579]*579that the Motion to Dismiss be granted as to Plaintiffs claim for promissory estoppel and denied in all other respects, as discussed below.

I. FACTUAL AND PROCEDURAL BACKGROUND

Accepting the factual allegations of the Complaint as true, Plaintiff is a North Carolina corporation with its principal place of business in Charlotte, North Carolina. Defendant is a Delaware corporation with its principal place of business in Dallas, Texas.

Plaintiff is a distributor of- hair care products. Defendant manufactures hair care products. In September 2009, Plaintiff and Defendant negotiated a contract for Plaintiff to act as Defendant’s “warehousing and transportation management services agent.” During the course of those negotiations, Plaintiff determined it needed 18,000 additional square feet of warehouse space to accommodate Defendant’s products. Plaintiff investigated available warehouse space and received an offer for a five-year lease from Pro Logistics, LLC (“Landlord”).

Before agreeing to the lease, Plaintiff (through its CEO, Tom Tyree) negotiated a commensurate contract term with Defendant (through its CEO, Eric Brown). Specifically, Tyree asked Brown if Defendant intended to do business with Plaintiff for the duration of the proposed five-year lease. Tyree explained that Plaintiff had no need for the additional warehouse space unless it was servicing Defendant, and would not enter into a contract with Defendant unless Defendant agreed to a five-year term. In response, Brown stated that Defendant intended for the contract to extend for five years commensurate with the duration of the lease, and agreed to the five-year term. The Complaint alleges that Brown made those representations with reckless indifference to their truthfulness.

Based upon Defendant’s representations and agreement to the five-year term, Plaintiff began to lease the warehouse later that month. The parties then finalized the monthly pricing terms and began performance of the contract in late September 2009. The monthly pricing terms were set forth in a letter agreement dated September 29, 2009, and executed by both parties. The parties performed under the contract until October 1, 2012, when Defendant terminated the contract two years prior to completion of the five-year term.

On February 12, 2013, Plaintiff filed its Complaint in Mecklenburg County Superi- or Court, stating claims for breach of contract, promissory estoppel and negligent misrepresentation.

On March 15, 2013, Defendant removed this matter to the United States District Court for the Western District of North Carolina alleging diversity subject matter jurisdiction. Although the Complaint seeks damages “in excess of $10,000,” Plaintiff demanded in excess of $205,000 in pre-litigation correspondence.

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966 F. Supp. 2d 576, 2013 WL 4495177, 2013 U.S. Dist. LEXIS 117165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twt-distributing-inc-v-johnson-products-co-ncwd-2013.