Volvo GM Heavy Truck Corp. v. Key GMC Truck Sales, Inc.

773 F. Supp. 1033, 1991 U.S. Dist. LEXIS 12746, 1991 WL 179624
CourtDistrict Court, S.D. Ohio
DecidedApril 29, 1991
DocketCiv. A. C-1-88-934
StatusPublished
Cited by1 cases

This text of 773 F. Supp. 1033 (Volvo GM Heavy Truck Corp. v. Key GMC Truck Sales, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Volvo GM Heavy Truck Corp. v. Key GMC Truck Sales, Inc., 773 F. Supp. 1033, 1991 U.S. Dist. LEXIS 12746, 1991 WL 179624 (S.D. Ohio 1991).

Opinion

ORDER

HERMAN J. WEBER, District Judge.

This matter is before the Court upon the Reports and Recommendations of the United States Magistrate (doc. nos. 45, 46, and 47), the objections thereto, the highlighted findings of fact and conclusions of law, and all related memoranda. A hearing was held on Friday, April 19, 1991.

Upon a review of the entire record, especially in light of the objections raised, the Court finds that all contentions have either been adequately addressed and properly disposed of by the Magistrate or present no particularized arguments that warrant specific responses by this Court except as to modifications stated in court during the hearing. The Court finds that the Magistrate has accurately set forth the controlling principles of law and properly applied them to the particular facts of this case and agrees with the findings made by the Magistrate.

Pursuant to the record made during the hearing, the Court hereby ADOPTS the Reports and Recommendations of the United States Magistrate (doc. nos. 45, 46, and 47). Accordingly, the Court hereby

1. GRANTS judgment in favor of plaintiff Volvo GM against defendant/third-party plaintiff Key in the amount of $108,-337.13 plus interest at the legal rate from October 12, 1988 and costs;

2. GRANTS judgment of dismissal in favor of plaintiff Volvo GM against defendant/third-party Key on Key’s counterclaims for Breach of the PSA by Volvo GM, Fraud, Discriminatory Pricing, and Federal Antitrust Laws violation, O.R.C. §§ 1331.01 and 4517.01, and 15 U.S.C. § 1221 et seq.;

3. DENIES plaintiff Volvo GM’s Motion for Summary Judgment on Key’s counterclaim (contained in Key’s Fifth Counterclaim) for Tortious Interference with a Business Relationship;

4. DENIES defendant/third-party plaintiff Key’s Motion for Summary Judgment (doc. no. 29) in its entirety;

5. GRANTS third-party defendant General Motors’ judgment of dismissal of defendant/third-party plaintiff Key’s claims for Breach of Contract, violation of O.R.C. § 1331.01, and for fraudulently inducing Key to enter into the PSA Agreement; and

6. DENIES third-party defendant General Motors’ Motion for Summary Judg *1036 ment (doe. no. 30) on defendant/third party-plaintiff Key’s third-party claims under 0. R.C. § 4517.01, 15 U.S.C. § 1221 (contained in Key’s. Second Third-Party Claim), and for fraud in inducing it to promote and sell GM's heavy-duty trucks (contained in Key’s Third Third-Party Claim).

The remaining claims, as listed above, shall proceed through discovery as discussed on the record in the hearing. The parties shall report to the Court on the status of this case on July 19, 1991.

IT IS SO ORDERED.

REPORT AND RECOMMENDATION THAT PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT BE GRANTED IN PART AND DENIED IN PART

JACK SHERMAN, Jr., United States Magistrate Judge.

REPORT

Now before the Court is plaintiff’s motion for summary judgment (doc. 31) opposed by defendant/third-party plaintiff (doc. 38).

UNDISPUTED FACTS

Plaintiff, Volvo GM Heavy Truck Corporation (Volvo GM), is a manufacturer of heavy-duty trucks. Volvo GM’s predecessor in interest, General Motors Corporation (General Motors), manufactured such trucks under the ‘GMC’ name until late 1987 when Volvo GM was formed. 1 Defendant/third-party plaintiff, Key GMC Truck Sales, Inc. (Key), is a Cincinnati, Ohio truck dealer that formerly sold GMC heavy-duty trucks, but which was denied a Volvo GM heavy-duty truck franchise. 2

The undisputed facts upon which this motion is based are as follows: In August 1986, General Motors notified Key of its intent to cease heavy-duty truck production by December 31, 1987, and to manufacture and distribute with Volvo thereafter a new line of heavy-duty trucks. Key President John D. Bourke, Sr. depo. at 268-273; Bourke depo. exb. 31. In June 1987, Key was advised by Volvo GM that it had not been selected as a Volvo GM heavy-duty truck dealer. Id. at 140; Bourke depo. exb. 14. Accordingly, Key’s General Motors heavy-duty truck franchise expired on August 15 of that year. Bourke depo. exb. 41. Because neither Key nor General Motors desired this franchise change to effect Key’s impending fleet sale of GMC heavy-duty trucks to the Kroger Company, Key and Volvo GM entered into a limited ‘Parts and Service Agreement’ (PSA) in order to permit Key to maintain those Kroger trucks after their sale. See id.; doc. 1, exb. A at 1, § l. 3 This limited PSA was terminable by either party upon thirty (30) day’s written notice to the other. Doc. 1, exb. A at 3, §§ 30(b), 30(c).

On December 18, 1987 Volvo GM agent Richard Gurley corresponded with Key president Bourke and reiterated that the PSA was limited in scope and applied only to the maintenance of specific General Motors heavy-duty trucks sold by Key to Kroger. Bourke depo. exb. 43. In his letter, Gurley also advised Bourke that Volvo GM viewed the PSA as a “temporary arrangement whereby Kroger will ultimately source their requirements for [Volvo GM heavy-duty truck parts and maintenance] from one of our [other] dealers.” Id.

Three months later, in March 1988, Volvo GM contacted Kroger directly and advised Kroger that its General Motors heavy-duty truck fleet purchased from Key could be maintained less expensively by a Volvo GM authorized dealer. 4 Key general manager *1037 Russell L. Jackson, Jr. depo. exb 65. In July 1988, Volvo GM gave Key the requisite 30-day notice prior to termination of the parties’ PSA. Bourke depo. exb. 28. The PSA therefore terminated August 8, 1988. Id.

This motion concerns both (1) Volvo GM’s claim that Key breached the PSA by failing to pay for $108,337.13 in truck parts Volvo GM sold to Key; and (2) Key’s counterclaims that Volvo GM (a) fraudulently induced Key to enter into the PSA, (b) breached that agreement, (c) tortiously interfered with Key’s business relationship to Kroger, (d) intentionally engaged in discriminatory pricing, and (e) violated unspecified antitrust laws, Ohio Revised Code (O.R.C.) §§ 1331.01 et seq. (Valentine Act) and 4517.01 et seq. (Ohio Dealer Act), and 15 U.S.C. § 1221 et seq. (Automobile Dealers’ Day in Court Act).

I.

A motion for summary judgment should be granted only if the evidence submitted to the Court demonstrates that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. Fed.R.Civ.P.

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773 F. Supp. 1033, 1991 U.S. Dist. LEXIS 12746, 1991 WL 179624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/volvo-gm-heavy-truck-corp-v-key-gmc-truck-sales-inc-ohsd-1991.