Weeks Tractor & Supply Co., LLC v. Arctic Cat Inc.

784 F. Supp. 2d 642, 2011 U.S. Dist. LEXIS 32509, 2011 WL 1188550
CourtDistrict Court, W.D. Louisiana
DecidedMarch 28, 2011
Docket2:09-po-02104
StatusPublished
Cited by4 cases

This text of 784 F. Supp. 2d 642 (Weeks Tractor & Supply Co., LLC v. Arctic Cat Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weeks Tractor & Supply Co., LLC v. Arctic Cat Inc., 784 F. Supp. 2d 642, 2011 U.S. Dist. LEXIS 32509, 2011 WL 1188550 (W.D. La. 2011).

Opinion

RULING

DEE D. DRELL, District Judge.

Before the Court are cross motions for partial summary judgment by Plaintiff Weeks Tractor and Supply Co., LLC (“Dealer” or “Plaintiff”) (Doc. 37) and Defendants Arctic Cat Inc. (“Arctic”) and Arctic Cat Sales Inc. (“Arctic Sales”) (collectively “Defendants”) (Doc. 40). 1 Considering the parties’ filings and the other evidence in the Record and for the reasons given below, we DENY Plaintiffs motion (Doc. 37) and GRANT that of Defendants (Doc. 40).

BACKGROUND

Plaintiff was a dealer or retail seller of Arctic Cat all-terrain vehicles (“ATVs”) in Natchitoches Parish, Louisiana. Defendant Arctic is a manufacturer of such ATVs. Defendant Arctic Sales distributes these ATVs, including from 2004 to 2009 those manufactured by Arctic to Plaintiff. Plaintiff terminated its dealership in the latter part of 2009, apparently under less than cordial circumstances; it filed a lawsuit alleging various claims, eventually leading to the present dispute. (Doc. 40-4, pp. 6-7).

Before terminating its dealer agreement, Plaintiff had ordered model year 2010 ATVs in July and September of 2009. It apparently received both orders prior to its effective termination, with the latter delivered after it had already given notice.

Additionally, at termination Plaintiff still had in its possession vehicles from model year 2008. The core of the present dispute arises from these vehicles, and specifically Plaintiffs claim that Arctic was and is obliged to repurchase them. 2

The parties agree that the basis for Defendants’ obligation is the version of Louisiana’s motor vehicle repurchase statute (“the Repurchase Statute”) in force at the time of these events. It reads, in relevant part:

§ 1268.1. Manufacturer mandatory repurchase; motorcycle or all-terrain vehicle dealer; marine dealer; recreational or travel trailer dealer; utility trailer dealer
A. (1) In the event that a dealer ceases to engage in the business of being a motorcycle or all-terrain vehicle dealer ... and after notice thereof to the manufacturer or distributor ... within thirty days thereafter ... the manufacturer or distributor, at a minimum, shall repurchase all new and unused motorcycles and all-terrain vehicles of the current and immediate prior model year....

La.Rev.Stat. Ann. 32:1268.1; La. Legis. Acts 2009, No. 403, § 1, eff. July 7, 2009; 2009 La. Sess. Law Serv. Act 403 (S.B. 175) (West) (emphasis added). 3

*645 At issue is the bolded phrase “current and immediate prior model year.” Plaintiff argues that this language requires Defendants to repurchase those vehicles from the model year the termination occurred— 2009, which it argues was the “current” model year — and the year immediately pri- or, 2008. In opposition, Defendants argue that the “current” model year was that of the last vehicles delivered before termination-in this case 2010 — so the statute requires it to repurchase Plaintiffs vehicles from that year and the year immediately prior, 2009. In summary, the parties agree that the statute requires Defendant to repurchase the (unused) vehicles it had delivered to Plaintiff from model year 2009, but they disagree on whether that obligation extends to the 2008 models. 4 Both sides seek summary judgement solely as to this point of statutory interpretation, a question of law.

ANALYSIS

I. THE POSITIONS OF THE PARTIES

Plaintiffs main argument is a textual one, a “proper and logical interpretation ... using the plain meaning of the words.” (Doc. 37-3, p. 13). It argues that “current ... model year” means what it says-the models from the current year-and it cites Black’s Law Dictionary for the proposition that “current year” ordinarily means “the year now running.” Id. As Plaintiff terminated its dealer agreement in 2009, the year then running was 2009, the prior year was 2008, and Arctic “would therefore have been required to repurchase those units having a model year of 2008.” Id. Meanwhile, Plaintiff argues that Louisiana favors a plain meaning method of statutory interpretation, and as no other definition of these terms has ever been propounded — in the statute or by a court — there is no basis for diverging from this method here. (Doc. 37-3, pp. 9-10) (quoting La. Civ.Code art. 9, discussed in greater detail below).

Defendants argue to the contrary on three bases. First, based on the statute’s text, they attempt to undermine Plaintiffs interpretation and to assert a textual argument of their own. Against Plaintiffs interpretation, while Defendants agree that “current year” means what Plaintiff says, they observe that the statute does not refer to vehicles from the “current year” but to vehicles from the “current ... model year.” They further note that the Louisiana Supreme Court has adopted the interpretative rule that:

When interpreting a statute ... [i]t is presumed that every word, sentence, or provision ... was intended to serve some useful purpose, that some effect is to be given to each such provision, and that no unnecessary words or provisions were used. Conversely, it will not be presumed that the Legislature inserted idle, meaningless, or superfluous language in the statute or that it intended for any part or provision of the statute to be meaningless, redundant or useless.

(Doc. 40-4, pp. 8-9) (citing ABL Mgmt., Inc. v. Bd. of Supervisors of S. Univ., 773 So.2d 131, 135 [La.2000]) (internal citations omitted). In addition, they observe that Plaintiffs analysis is “incomplete.” They concede that Black’s Law Dictionary indeed says that the “current year” ordinarily refers to the “calendar year in which the event under discussion took place.” However, they observe that it also says that “the current fiscal year of a business may run from July 1st to June 30th, or some other twelve month period,” indicat *646 ing, they allege, that it is recognized that a relevant year for business purposes will often not correspond to the calendar year. (Doc. 40-4, p. 10). Accordingly, they argue, the phrase “current ... model year” should not be interpreted to have the same meaning as simply “current year,” or at the least the phrase should be considered sufficiently ambiguous and Plaintiffs interpretation sufficiently suspect so as to warrant further inquiry.

In support of their own interpretation, Defendants argue that the meaning of the phrase “current ... model year” is best understood textually according to its customary usage in the motor vehicle and ATV industry, where vehicles from the next model year are generally delivered to and sold by dealers beginning the summer and fall of the previous calendar year. 5 Accordingly, they claim, it is widely understood in their industry that vehicles from the “current ... model year” will not be those from the current calendar year.

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Bluebook (online)
784 F. Supp. 2d 642, 2011 U.S. Dist. LEXIS 32509, 2011 WL 1188550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weeks-tractor-supply-co-llc-v-arctic-cat-inc-lawd-2011.