Venver SA v. GEFCO Inc

CourtDistrict Court, W.D. Oklahoma
DecidedNovember 21, 2023
Docket5:18-cv-00790
StatusUnknown

This text of Venver SA v. GEFCO Inc (Venver SA v. GEFCO Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Venver SA v. GEFCO Inc, (W.D. Okla. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

VENVER, S.A. and ) AMERICAS COIL TUBING, LLC, ) ) Plaintiffs, ) ) v. ) Case No. CIV-18-790-SLP ) GEFCO, INC. and ) ASTEC INDUSTRIES, INC., ) ) Defendants. )

O R D E R Before the Court are the following Motions: (1) Plaintiffs’ Motion for Partial Summary Judgment as to Venver’s Capacity to Sue [Doc. No. 197]; (2) Defendant GEFCO Inc.’s Motion for Summary Judgment – only as to the issue of Venver’s claim for breach of express warranty [Doc. Nos. 212, 214] (argument at 20-23); and (3) Defendant GEFCO, Inc.’s Motion for Judgment on the Pleadings Regarding Venver’s Express Warranty Claim [Doc. No. 147].1 These matters are fully briefed. For the reasons that follow Plaintiffs’ Motion for Partial Summary Judgment is GRANTED. Defendant GEFCO Inc.’s Motion for Summary Judgment is DENIED IN PART2 and Defendant GEFCO Inc.’s Motion for Judgment on the Pleadings is DENIED.

1 Citations to the parties’ briefing submissions reference the Court’s ECF pagination.

2 The Court will address the remaining issues raised in Defendant’s Motion for Summary Judgment by separate order. I. Introduction This action arises from the manufacture, purchase and sale of a VR-500 drilling rig (the Rig). The Rig is alleged to be nonconforming to contract specifications and the parties’

disputes arise from this alleged nonconformity. Defendant, GEFCO, Inc. (GEFCO), is a Tennessee corporation. GEFCO manufactured and sold the Rig. Plaintiff, Americas Coil Tubing, LLC (ACT), a Texas limited liability company, purchased the Rig from GEFCO for a purchase price in excess of eight million dollars. The

primary issue before the Court requires a determination as to the capacity in which ACT purchased the Rig. Plaintiff, Venver, S.A., an Argentine company (Venver), operates oil & gas drilling rigs in Argentina. Venver negotiated with GEFCO for months regarding the manufacture and specification of the Rig. Venver intended to use the Rig to service a five-year drilling

contract with a major Argentine exploration company. See Joint Status Report [Doc. No. 31] (JSR), ¶ 1(a). Venver alleges that ACT purchased the Rig “as agent on behalf of, and for the express benefit of, Venver.” See Third Am. Compl. [Doc. No. 233], ¶ 10. And Venver further alleges that GEFCO knew that ACT purchased the Rig “on behalf of and for the benefit of Venver.” Id., ¶ 11. Thus, Plaintiffs moves for partial summary judgment

contending Venver has the right to directly enforce the contract for the purchase of the Rig from GEFCO under agency law or as a third-party beneficiary of that contract. In responding to Plaintiffs’ Motion, GEFCO contests that ACT entered into the purchase contract as agent for Venver. GEFCO primarily argues that agency law is not relevant and directs a substantial portion of its briefing to the express warranty provision of the purchase contract. See, e.g., Def.’s Resp. at 22 (“. . . Plaintiffs’ motion totally misses the point. Plaintiffs conflate agency law with whether Venver falls within the scope of the

express warranty GEFCO sculpted.”); see also id. at 6 (“Plaintiff’s motion misses the point. Regardless of whether a principal can sue for contracts entered into by an agent, it does not change that a seller can ‘sculpt’ an express warranty however it wishes.”).3 GEFCO argues that under the express warranty terms, only the “first purchaser” can enforce the express warranty. According to GEFCO, ACT is clearly the first purchaser

and, therefore, only ACT, not Venver, has the right to enforce the express warranty. GEFCO has also raised this issue in its Motion for Judgment on the Pleadings and in its Motion for Summary Judgment. In the interests of judicial efficiency, the Court addresses the issue in this Order. II. Governing Standard

“Summary judgment is appropriate when ‘the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.’” Dullmaier v. Xanterra Parks & Resorts, 883 F.3d 1278, 1283 (10th Cir. 2018) (quoting Fed. R. Civ. P. 56(a)). In deciding whether summary judgment is proper, the court does not weigh the evidence, but rather determines whether there is a genuine issue for trial.

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986); see also Roberts v. Jackson

3 To the extent Venver seeks to enforce other terms of the purchase contract, GEFCO does not address those terms. GEFCO’s focus is narrow, concentrating on the express warranty provision. Hole Mountain Resort Corp., 884 F.3d 967, 972 (10th Cir. 2018). If there is sufficient evidence on each side so that a rational trier of fact could resolve the issue either way, the issue is “genuine.” Adler v. Wal-Mart Stores, Inc., 144 F.3d 664, 670 (10th Cir. 1998).

“Material” issues of fact include those that, under the substantive law, are essential to the proper disposition of the claim. Id. The Court construes the evidence in the light most favorable to the nonmovant, drawing all reasonable inferences in the nonmovant’s favor. Est. of Beauford v. Mesa Cnty., Colo., 35 F.4th 1248, 1261 (10th Cir. 2022) (citing Anderson, 477 U.S. at 248).

III. Undisputed Material Facts4 The purchase contract (the Contract) for the Rig is dated August 1, 2013. See Contract [Doc. No. 197-1]. It is undisputed that ACT purchased the Rig. Notably, well in advance of summary judgment briefing, the parties stipulated to this fact. See JSR, Stipulated Facts [Doc. No. 31-2], ¶ 6 (“Through a written agreement dated August 1, 2013,

GEFCO agreed to sell to ACT a ‘VR-500’ top head drilling rig and related equipment, for “$8,451,509.00.”). ACT is a Texas limited liability company and its sole owner and sole employee is Humberto “Bert” Leniek.

4 Included here are those material facts supported by the record and not genuinely disputed in the manner required by Fed. R. Civ. P. 56(c). The Court has considered both the parties’ factual submissions made in conjunction with Plaintiffs’ Motion for Partial Summary Judgment and those made in conjunction with GEFCO’s Motion for Summary Judgment as to the express warranty issue. However, because the factual record is duplicative, the Court’s citations focus primarily on the factual submissions made in conjunction with Plaintiffs’ Motion for Partial Summary Judgment. The Contract includes the term “SELLER” and defines SELLER as “the George E. Failing Company.” See id. at 17.5 For purposes of the pending Motions, it is undisputed that GEFCO is the SELLER and manufactured and sold the Rig.

The Contract is signed by officers of GEFCO and Matias Forster. See Contract [Doc. No. 197-1] at 16. Mr. Forster signed the Contract as “purchasing agent.” See id. At all relevant times, Matias Forster served as one of the three owners of Venver. Matias Forster is not, and never has been, an officer or employee of ACT. Mr. Leniek, the sole officer/employee of ACT, did not sign the Contract.

The Contract includes a warranty provision which reads: The Warranty extends only to the first PURCHASER and becomes effective and remains in effect, only when invoices for products are paid in accordance with the stated sales terms. Warranty is extended to VenVer from Americas Coil Tubing LLC.

Id. at 17.

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Venver SA v. GEFCO Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venver-sa-v-gefco-inc-okwd-2023.