Unishippers Global Logistics, LLC v. DHL Express (USA), Inc.

526 F. App'x 899
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 4, 2013
Docket11-4216, 12-4008
StatusUnpublished

This text of 526 F. App'x 899 (Unishippers Global Logistics, LLC v. DHL Express (USA), Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unishippers Global Logistics, LLC v. DHL Express (USA), Inc., 526 F. App'x 899 (10th Cir. 2013).

Opinion

ORDER AND JUDGMENT *

CARLOS F. LUCERO, Circuit Judge.

Unishippers Global Logistics, LLC (“Unishippers”) filed suit against DHL Express (USA), Inc. (“DHL”), alleging that *901 DHL breached the parties’ agreements by restructuring and failing to provide proper notice. The district court granted partial summary judgment to Unishippers on its notice claim and denied DHL’s motion for partial summary judgment. It also denied DHL’s motion to limit damages evidence at trial. After trial, the jury returned a special verdict awarding Unishippers $2.5 million on its restructuring claim and $27,903,865 on its notice claim, $3 million of which concerned damages for the contractual notice period, and $24,903,865 of which pertained to the time period beyond the notice period. DHL appeals, and Un-ishippers conditionally cross-appeals.

We affirm the district court’s grant of partial summary judgment to Unishippers on its notice claim. We also affirm the denial of DHL’s motion for judgment as a matter of law on its restructuring claim. However, we reverse the award of damages beyond the contractual notice period and thus vacate the $24,903,865 in damages. We need not reach Unishippers’ remaining claims. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm in part, reverse in part, and remand for further proceedings.

I

Headquartered in Salt Lake City, Utah, Unishippers franchises its shipping and freight business system throughout the United States. In 1994, Unishippers and Airborne Freight Corporation entered into the National Account Agreement (“NAA”), which stated that Airborne would provide expedited shipping services for the Unish-ippers franchise system and its customers. In 2003, DHL acquired Airborne and assumed Airborne’s rights and obligations under the NAA.

Pursuant to the NAA, DHL was required to provide Unishippers with “Transportation Services” within “the parameters of the general conditions of its Service Guide in effect at the time each shipment is tendered.” Airborne and later DHL separately published a guide that listed service offerings and locations, which was updated periodically to reflect changes in service. The NAA could not be terminated except for good cause “in the event of a material breach” by the other party and after an opportunity to cure. It also contained an integration clause stating that “[t]his Agreement constitutes the whole contract between the parties and neither party is bound by any other expressions or representations made by either party, their agents or any other party.” On July 11, 2007, DHL extended the NAA with Unishippers through September 20, 2017.

Beginning in the latter half of 2007, DHL began considering withdrawal from the United States domestic market. However, DHL repeatedly provided reassurances to Unishippers that it would not be withdrawing. On May 28, 2008, DHL announced that it would be limiting services in low population density areas in the United States. According to Unishippers, this so-called “White Space” restructuring ultimately resulted in an approximate thirty-five percent reduction in Unishippers’ business.

In response to this reduction, Uniship-pers sought another domestic shipping partner. However, the NAA provided for termination of the agreement if Uniship-pers’ franchisees failed to use DHL’s domestic services exclusively. The parties entered into a Reseller Agreement on October 6, 2008, which released Unishippers from its exclusivity obligation. Under the agreement, Unishippers could terminate the contract at any time without cause upon ninety days’ notice, and DHL could similarly terminate at any time without cause by giving 180 days’ notice. The *902 agreement also stated that “no other amendments or ancillary documents” other than those specifically included in the NAA would apply.

On October 22, 2008, Unishippers finalized an agreement with United Parcel Service (“UPS”), which provided that UPS would become Unishippers’ exclusive express shipping carrier for both domestic and international shipments by October 22, 2009.

In a letter dated November 10, 2008, DHL informed Unishippers that it would cease providing domestic services on January 30, 2009. DHL further stated that it would cease domestic services on December 10, 2008 for Unishippers’ customers who had not regularly shipped internationally through DHL. DHL also notified Un-ishippers that it would be terminating the Reseller Agreement pursuant to the 180-day notice provision in May 2009.

Unishippers filed suit against DHL, alleging that DHL breached the NAA and the Reseller Agreement by withdrawing from the United States domestic market as part of its restructuring plan and by failing to give Unishippers 180 days’ notice. The district court granted partial summary judgment to Unishippers on its 180-day notice claim and denied DHL’s motion for partial summary judgment on Unishippers’ restructuring claim. It also denied DHL’s motion to limit damages evidence to the 180-day notice period or to the period before UPS became Unishippers’ exclusive shipping supplier. Finally, the district court granted DHL’s motion to dismiss Unishippers’ claim for rescission of the Reseller Agreement.

The district court instructed the jury that it could award damages extending beyond the 180-day notice period if the jury determined that DHL was “equitably estopped” from asserting the 180-day notice provision as a damages limitation. The court also instructed the jury that it could award damages beyond 180 days if it found that “DHL breached the contractual provision to act in good faith.”

After the jury found that DHL’s “White Space” restructuring plan breached the contract and that Unishippers was entitled to damages beyond the 180-day notice period, it returned a special verdict awarding Unishippers $2.5 million in damages for DHL’s “White Space” reductions, $3 million in damages for the 180-day notice period, and $24,903,865 for the time period beyond the 180-day notice period. Unish-ippers also received attorney’s fees and costs totaling $1.7 million. The district court denied DHL’s post-trial motions for judgment as a matter of law and a new trial. DHL appealed and Unishippers filed a conditional cross-appeal based on the district court’s dismissal of its rescission claim.

II

Because this case comes to us from the District of Utah, Utah state law controls our choice-of-law analysis. Salt Lake Tribune Publ’g Co. v. Mgmt. Planning, Inc., 390 F.3d 684, 692 (10th Cir.2004). Utah courts “apply the ‘most significant relationship’ approach as described in the Restatement (Second) of Conflict of Laws in determining which state’s laws should apply to a given circumstance.” Id. at 693 (quoting Waddoups v. Amalgamated Sugar Co., 54 P.3d 1054, 1059 (Utah 2002)).

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

Related

Gardetto v. Mason
100 F.3d 803 (Tenth Circuit, 1996)
Deters v. Equifax Credit Information Services, Inc.
202 F.3d 1262 (Tenth Circuit, 2000)
Gillogly v. General Electric Capital Assurance Co.
430 F.3d 1284 (Tenth Circuit, 2005)
Stewart v. Beach
701 F.3d 1322 (Tenth Circuit, 2012)
ProMark Group, Inc. v. Harris Corp.
860 P.2d 964 (Court of Appeals of Utah, 1993)
Otsuka Electronics (USA, Inc.) v. Imaging Specialists, Inc.
937 P.2d 1274 (Court of Appeals of Utah, 1997)
Osborn v. Commanche Cattle Industries, Inc.
545 P.2d 827 (Court of Civil Appeals of Oklahoma, 1975)
Dalton v. Jerico Construction Co.
642 P.2d 748 (Utah Supreme Court, 1982)
Penelko, Inc. v. John Price Associates, Inc.
642 P.2d 1229 (Utah Supreme Court, 1982)
Morris v. Health Net of California, Inc.
1999 UT 95 (Utah Supreme Court, 1999)
Peirce v. Peirce
2000 UT 7 (Utah Supreme Court, 2000)
Moon v. Moon
1999 UT App 12 (Court of Appeals of Utah, 1999)
Lamb v. Bangart
525 P.2d 602 (Utah Supreme Court, 1974)
Rio Algom Corp. v. Jimco Ltd.
618 P.2d 497 (Utah Supreme Court, 1980)
Waddoups v. Amalgamated Sugar Co.
2002 UT 69 (Utah Supreme Court, 2002)
WebBank v. American General Annuity Service Corp.
2002 UT 88 (Utah Supreme Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
526 F. App'x 899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unishippers-global-logistics-llc-v-dhl-express-usa-inc-ca10-2013.