WESTPORT MARINA, INC. v. Boulay

783 F. Supp. 2d 344, 2010 U.S. Dist. LEXIS 27707, 2010 WL 1223238
CourtDistrict Court, E.D. New York
DecidedMarch 24, 2010
DocketCivil Action 06-CV-5569
StatusPublished
Cited by11 cases

This text of 783 F. Supp. 2d 344 (WESTPORT MARINA, INC. v. Boulay) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WESTPORT MARINA, INC. v. Boulay, 783 F. Supp. 2d 344, 2010 U.S. Dist. LEXIS 27707, 2010 WL 1223238 (E.D.N.Y. 2010).

Opinion

MEMORANDUM & ORDER

HURLEY, Senior District Judge:

I. INTRODUCTION

Presently before the Court is a motion for summary judgment filed by defendant Clean Seas Company (“Clean Seas”) pursuant to Federal Rule of Civil Procedure 56. Plaintiffs’ Second Amended Complaint seeks recovery against Clean Seas on the following twelve counts: (I) Breach of Contract, (II) Negligence, (III) Breach of Express Warranty, (IV) Breach of Implied Warranty of Merchantability, (V) Breach of Implied Warranty of Fitness for a Particular Purpose, (VI) Common Law Fraud, (VII) Negligent Misrepresentation, (VIII) Intentional Misrepresentation, (IX) Defective Product (Strict Products Liability), (X) Indemnity, (XI) Contribution, and (XII) Request for Attorneys’ Fees and Costs. Clean Seas’ motion for summary judgment targets all twelve counts. For the reasons stated below, Clean Seas’ motion is GRANTED in part and DENIED in part.

II. FACTUAL BACKGROUND

The following facts are undisputed unless otherwise noted. 1 Clean Seas was a corporation incorporated under the laws of the State of Florida, with its only office in Jacksonville, Florida. (Def.’s Local Civ. R. 56.1 Statement of Undisputed Material Facts (“Def.’s 56.1”) ¶ 1.) The product at issue in this case (the “Product”) was marketed as an enzymatic boat coating designed to inhibit marine growth on boat bottoms. (Pis.’ Resp. to Def.’s Local Civ. R. 56.1 Statement of Undisputed Material Facts (“Pis.’ 56.1”) ¶41.) The Product *347 was designed and patented by Clean Seas, manufactured by Suntec, Inc., and sold and distributed to Plaintiffs by Dolphinite, Inc. (“Dolphinite”) under Dolphinite-’s label as “Go Fast Bottom Paint” and “Go Fast Inflatable Bottom Coating.” (Def.’s 56.1 ¶ 3.) The Product was manufactured beginning in February 2003 and was first received by end-user customers in or around March 2003. (Pis.’ 56.1 ¶ 54.) By April 2003, Dolphinite and Clean Seas had begun to receive complaints regarding the effectiveness of the Product. (Pis.’ 56.1 ¶ 55.) Dolphinite filed for bankruptcy in 2004 and is no longer conducting business. (Def.’s 56.1 ¶ 5; see also Pis.’ Revised Deck of Deps. Ex. A, Vol. 1, 16:17-20.) Clean Seas terminated its business operations in September 2005. (Def.’s 56.1 ¶ 4.)

Plaintiffs are wholesale distributors of marine products who sold the Product to retail distributors, who in turn sold the Product to end-user customers. (Def.’s 56.1 ¶ 6.) Plaintiffs do not allege that they suffered property damage as a result of applying the Product to boats owned by them. (Def.’s 56.1 ¶ 7.) Rather, Plaintiffs allege that the failure of the Product to perform as expected caused them to suffer economic losses in excess of $985,000. (Def.’s 56.1 ¶ 36; see also Second Am. Compl. 16-17.) Plaintiffs acknowledge that they are not parties to a contract with Clean Seas, either written or oral. (Pis.’ Mem. in Opp’n to Mot. for Summ. J. 16.) Indeed, Plaintiffs had no direct contact with Clean Seas representatives prior to receiving complaints from end-user customers. (Def.’s 56.1 ¶¶ 13, 15, 20, 21, 22 & 27.) 2 Instead, Plaintiffs were introduced to the Product by and purchased the Product from Adam Boulay (“Boulay”), President and owner of Dolphinite. (Def.’s 56.1 ¶¶ 8,18,19 & 26.)

The labels on the Product did, however, include Clean Seas’ logo and the notation, “With MET Inside,” a reference to Clean Seas’ patented enzymatic antifouling additive. (See Pis.’ Revised Deck of Documentary Exhibits Ex. 1, 2 & 5.) The labels also contained the following statements: “Keeps hull exceptionally clean from marine growth! Increase speed, Reduce drag, Maximize efficiency!” (Pis.’ Revised Deck of Documentary Exhibits Ex. 1.) Plaintiffs allege, inter alia, that “Clean Seas drafted, designed, and had final approval over ... [all statements on the] labels.” (Pis.’ Mem. in Opp’n to Mot. for Summ. J. 9.) Plaintiffs further allege that they were merely passive parties in the supply chain and, as such, were guilty of no wrongdoing. (Pis.’ Mem. in Opp’n to Mot. for Summ. J. 17-18.) Clean Seas acknowledges responsibility only for the application and storage instructions contained on the Product’s labels and denies responsibility for the statements, “Keeps hull exceptionally clean from marine growth! Increase speed, Reduce drag, Maximize efficiency!” (Def.’s Resp. to Pis.’ 56.1 ¶¶ 60 & 61.) Instead, Clean Seas asserts that Boulay, as president of Dolphinite and not at the direction of Clean Seas, was responsible for placing these sanguine statements on the labels. (See, e.g., Def.’s 56.1 ¶¶ 9 & 30.)

III. PROCEDURAL HISTORY

This action was originally filed in the United States District Court for the *348 Northern District of New York, and later transferred to the Eastern District. Plaintiffs’ original Complaint, filed in the Northern District on January 12, 2004, sought recovery against the following defendants: Dolphinite, Inc.; Adam Boulay; The Clean Seas Company; Brook Venture Fund, LP; Brook Venture Partners, LLC; Suntec Paint, Inc.; ABC Corps. 1-10 (fictitious entities); and John Does 1-10 (fictitious individuals). (See Compl.) The Northern District’s docket sheet indicates that the action was terminated as against Dolphinite on June 2, 2004. On that date, Plaintiffs filed their First Amended Complaint, which omitted Dolphinite, an entity “now in bankruptcy,” as a party. (First Am. Compl. 2.) The Northern District’s docket sheet also indicates that the action was terminated as against Brook Venture Fund, Brook Venture Partners, and Suntec Paint on October 12, 2004. On that date, the Northern District granted Suntec Paint’s motion to dismiss for lack of personal jurisdiction, and granted Brook Venture Fund and Brook Venture Partners’ motions to dismiss for failure to state a claim. (See Ct.’s Order (Hurd, J.) at 1, Oct. 12, 2004; see also Tr. of Proceedings Before Hon. David N. Hurd, Nov. 1, 2004.) The Northern District’s docket sheet further indicates that Plaintiffs moved for an entry of default against Boulay on November 18, 2004, and that the Clerk of the Court noted Boulay’s default on November 19, 2004. (See Req. for Entry of Default, Nov. 18, 2004; Entry of Default, Nov. 19, 2004.) However, there is no indication that a default judgment was ever entered against Boulay.

Plaintiffs’ Second Amended Complaint was filed in the Northern District on May 16, 2005, and seeks recovery against the following defendants: Adam Boulay; The Clean Seas Company; ABC Corps 1-10 (fictitious entities); and John Does 1-10 (fictitious individuals). (See Second Am. Compl.) The action was transferred to the Eastern District on September 21, 2006. (See Ct.’s Order (Hurd, J.) at 1-2, Sept. 21, 2006.)

IV. SUMMARY JUDGMENT STANDARD

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Bluebook (online)
783 F. Supp. 2d 344, 2010 U.S. Dist. LEXIS 27707, 2010 WL 1223238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westport-marina-inc-v-boulay-nyed-2010.