791 F.2d 935 (6th Cir. 1986), 85-1203, Scot Lad Foods, Inc. v. Ames Food Market, Inc.

Docket Nº:85-1203
Citation:791 F.2d 935
Party Name:SCOT LAD FOODS, INC., a Delaware corporation and its subsidiary corporations, LAKE END SALES, INC.; CUSTOM MERCHANDISERS, INC., EVANSVILLE FOOD DISTRIBUTORS, INC., GARDEN CITY FOODS, INC., and REDT-FROZ, INC., Plaintiffs-Appellees, v. AMES FOOD MARKET, INC.; KENNETH C. AMES, Individually and as President of AMES FOOD MARKET, INC.; BETTY E. AMES, In
Case Date:April 07, 1986
Court:United States Courts of Appeals, Court of Appeals for the Sixth Circuit
 
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Page 935

791 F.2d 935 (6th Cir. 1986)

SCOT LAD FOODS, INC., a Delaware corporation and its subsidiary corporations, LAKE END SALES, INC.; CUSTOM MERCHANDISERS, INC., EVANSVILLE FOOD DISTRIBUTORS, INC., GARDEN CITY FOODS, INC., and REDT-FROZ, INC., Plaintiffs-Appellees,

v.

AMES FOOD MARKET, INC.; KENNETH C. AMES, Individually and as President of AMES FOOD MARKET, INC.; BETTY E. AMES, Individually and as Secretary of AMES FOOD MARKET, INC.; CHARLES L. AMES, and THERESA AMES, Jointly and Severally, Defendants-Appellants.

No. 85-1203

United States Court of Appeals, Sixth Circuit

April 7, 1986

Editorial Note:

This opinion appears in the Federal reporter in a table titled "Table of Decisions Without Reported Opinions". (See FI CTA6 Rule 28 and FI CTA6 IOP 206 regarding use of unpublished opinions)

AFFIRMED

E.D.Mich.

ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN

BEFORE: ENGEL, CONTIE and MILBURN, Circuit Judges.

PER CURIAM.

Defendants Ames Food Market, Inc., et al. ('Ames') appeal the jury verdict for plaintiffs Scot Lad Foods, Inc., et al. ('Scot Lad') in this diversity action to collect on a judgment. Finding no reversible errors by the district court, we affirm.

I.

Scot Lad is a Delaware corporation engaged in the sale of groceries wholesale. In July, 1977, Ames began purchasing groceries from Scot Lad for resale and gave Scot Lad a security interest in its inventory. Ames also obtained equipment from Scot Lad pursuant to a five-year lease. After rectifying arrears in its payments to Scot Lad for purchased groceries in March, 1978, Ames became delinguent to Scot Lad under the equipment lease.

Thereafter, the parties entered into an agreement for the entry of a consent judgment in which Ames acknowledged that its payments were delinguent and agreed to accelerate payments such that the total amount due under the lease, $142,150.12, would be paid in just over two years. Ames also agreed to maintain specified minimum inventory levels in order to secure the debt. The consent judgment agreement specifically provided that the agreement did not supercede the prior security agreement, and, further, Scot Lad had the right to enforce the judgment 'in any lawful manner' upon Ames' default.

Although originally presented in a different form to the district court for entry on or about May 25, 1979, the judge refused to enter the proposed judgment at that time because a representative of Ames was not present. On June 21, 1979, the revised consent judgment agreed to by the parties was approved by the district court, and on June 25, 1979, the clerk entered the judgment.

In the meantime, having discovered that Ames' inventories had fallen significantly below the required minimum levels, Scot Lad filed an affidavit of default with the court on June 25, 1979, under the consent judgment and secured a Writ of Execution. Later that day, Scot Lad agents, accompanied by sheriff's deputies, entered Ames' stores and seized its inventory which was subsequently sold.

Thereafter, Scot Lad brought this action seeking as damages the unsatisfied portion of the consent judgment. Ames raised verious counterclaims including breach of contract, malicious prosecution, and tortious interference with a business relationship. At the conclusion of a ten-day trial, the jury returned a verdict of $71,096.44 in favor of Scott Lad and recommended a verdict of no cause of action on Ames' counterclaims. Judgment was entered on the basis of the jury's verdict and...

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