Ufe Inc. v. Methode Electronics, Inc.

808 F. Supp. 1407, 1992 U.S. Dist. LEXIS 19242, 1992 WL 372395
CourtDistrict Court, D. Minnesota
DecidedOctober 2, 1992
DocketCiv. 4-90-103
StatusPublished
Cited by14 cases

This text of 808 F. Supp. 1407 (Ufe Inc. v. Methode Electronics, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ufe Inc. v. Methode Electronics, Inc., 808 F. Supp. 1407, 1992 U.S. Dist. LEXIS 19242, 1992 WL 372395 (mnd 1992).

Opinion

ORDER

DOTY, District Judge.

This matter is before the court on defendants’ motion for judgment as a matter of law, plaintiff’s motion to alter or amend judgment or for judgment as a matter of law, or in the alternative, for a new trial on damages, plaintiff’s motion for witness and attorney’s fees, costs and disbursements, and plaintiff’s motion for prejudgment interest. Based on a review of the file, record and proceedings herein, the court denies defendants’ motion for judgment as a matter of law, denies plaintiff’s motion to alter or amend judgment or for judgment as a matter of law, denies plaintiff’s motion for a new trial on damages, denies plaintiff’s motion for witness and attorney’s fees, costs and disbursements, and grants plaintiff’s motion for prejudgment interest.

BACKGROUND

This matter came before the court in a jury trial from February 18, 1992, to March 6, 1992. Various claims were submitted to the jury by way of a special verdict, including UFE's claims for breach of contract, promissory estoppel, equitable estoppel, unjust enrichment and negligent misrepresentation. 1 The jury returned their answers on March 9, 1992 and on April 13, 1992, the court entered judgment in UFE’s favor on *1410 its breach of contract claim, and awarded UFE damages in the amount of $365,031. 2

The jury also found that defendants were promissorily estopped from denying the existence of the requirements contract, and that UFE’s reliance on defendants’ promises resulted in $80,000 in damages. However, based on the jury’s finding that a requirements contract existed between the parties, the court entered judgment in favor of defendants on plaintiff’s promissory estoppel claim based on its determination that the breach of contract and promissory estoppel claims were mutually exclusive. See, e.g., Del Hayes & Sons, Inc. v. Mitchell, 304 Minn. 275, 230 N.W.2d 588, 593 (1975) (“Promissory estoppel is the name applied to a contract implied in law where no contract exists in fact”, and thus doctrine is wholly inapplicable in situations where an actual contract exists).

Based on the jury’s finding of a requirements contract, the court also entered judgment in defendants’ favor on UFE’s negligent misrepresentation claim. Minnesota law does not recognize an independent tort for conduct that merely constitutes a breach of contract and after hearing the evidence, the court concluded that UFE based its misrepresentation claim on the same conduct underlying defendants’ breach of the requirements contract. See, e.g., Wild v. Rang, 302 Minn. 419, 234 N.W.2d 775, 790 (1975). The court also entered judgment in defendants’ favor on UFE’s equitable estoppel claim, finding that the equitable estoppel claim was another alternative to its breach of contract claim. The court further determined that UFE was entitled to no damages on the equitable estoppel claim because such damages would be duplicative of those awarded for the breach of contract claim.

Although the jury found damages in the amount of $105,300 for UFE’s claims of negligent misrepresentation and equitable estoppel, for the foregoing reasons, the court entered judgment in favor of defendants’ on those claims.

Finally, the court entered judgment in favor of defendants on UFE’s unjust enrichment claim, determining that under Minnesota law, when a jury finds that a contract exists and has been breached, a plaintiff cannot also recover under a theory of unjust enrichment. See, e.g., United States Fire Ins. Co. v. Minnesota State Zoological Bd., 307 N.W.2d 490, 497 (Minn. 1981) (citing Cady v. Bush, 283 Minn. 105, 166 N.W.2d 358 (1969)). The court entered judgment in defendants’ favor despite the fact that the jury awarded $132,374 in damages on that claim.

In summary, the court entered judgment in UFE’s favor on its breach of contract claim, and judgment in favor of defendants on UFE’s remaining claims. UFE now moves for entry of judgment in its favor on its claims of promissory estoppel, negligent misrepresentation, equitable estoppel and unjust enrichment. UFE further seeks damages totalling $682,705, which represents the total amount of damages set forth in the special verdict form, and argues that the evidence supports an award of all of those damages. In the alternative, UFE seeks a new trial concerning damages.

Defendants also move for judgment as a matter of law on all of UFE’s claims. Defendants claim that UFE’s breach of contract claim fails because the alleged requirements contract is barred by the statute of frauds, Minn.Stat. § 336.2-201. Defendants further contend that there was no evidence from which a reasonable jury could have found that the parties agreed on a durational term in the alleged contract, and that in the absence of such an agreed upon term, the contract was one that defendants could terminate at will.

*1411 Defendants claim that UFE’s promissory estoppel claim fails because defendants’ statements were too general to support any claim for promissory estoppel. They argue that UFE’s promissory estoppel claim further fails because UFE failed to demonstrate that defendants either intended or expected that UFE would rely on the statements at issue.

Defendants further contend that UFE’s claims of negligent misrepresentation and equitable estoppel fail because they seek damages for purely economic losses, and that the Uniform Commercial Code provides the exclusive remedy for such losses. Defendants further contend that UFE cannot recover on a claim of unjust enrichment because there has been no evidence to support such claim under Minnesota law. Thus, defendants seek judgment as a matter of law on all of UFE’s claims. 3

If the court does not grant judgment to defendants as a matter of law, then in the alternative, defendants ask the court to enter judgment in UFE’s favor in the amount of $418,191.45, representing the jury’s damage award of $365,031 on UFE’s breach of contract claim, plus prejudgment interest in the sum of $53,160.45. 4

Defendants finally ask that if a new trial on the issue of damages were to be held, that the court permit a new trial on all issues and deny UFE’s motion for a new trial solely on damages.

UFE also moves, pursuant to Minnesota state law, for an award of attorney’s fees, costs and disbursements in the amount of $453,209.58, arguing that defendants acted in bad faith by improperly withholding production drawings critical to UFE damages’ analysis. On February 19, 1992, defendants reduced the damages requested in their counterclaim by $122,900, and UFE contends that this action constitutes further evidence of bad faith and harassment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

WILKE v. OLSON
D. Maine, 2023
Frank Investments Ranson, LLC v. Ranson Gateway, LLC
Court of Chancery of Delaware, 2016
Odens Family Properties, LLC v. Twin Cities Stores, Inc.
393 F. Supp. 2d 824 (D. Minnesota, 2005)
Simplex Supplies, Inc. v. Abhe & Svoboda, Inc.
586 N.W.2d 797 (Court of Appeals of Minnesota, 1998)
Intergraph Corp. v. Intel Corp.
3 F. Supp. 2d 1255 (N.D. Alabama, 1998)
Banbury v. Omnitrition International, Inc.
533 N.W.2d 876 (Court of Appeals of Minnesota, 1995)
Nordale, Inc. v. Samsco, Inc.
830 F. Supp. 1263 (D. Minnesota, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
808 F. Supp. 1407, 1992 U.S. Dist. LEXIS 19242, 1992 WL 372395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ufe-inc-v-methode-electronics-inc-mnd-1992.