Siesta Sol, LLC v. Brooks Pharmacy, Inc.

• Decision Date: 16 August 2007
• Docket Number: C.A. No. 05-401S.
• Parties: SIESTA SOL, LLC, Plaintiff, v. BROOKS PHARMACY, INC., Defendant.
• Court: U.S. District Court — District of Rhode Island

617 F.Supp.2d 38

SIESTA SOL, LLC, Plaintiff, v. BROOKS PHARMACY, INC., Defendant.

C.A. No. 05-401S.

United States District Court, D. Rhode Island.

August 16, 2007.

COPYRIGHT MATERIAL OMITTED

Robert D. Fine, Chace, Ruttenberg & Freedman, LLP, Providence, RI, for Plaintiff.

Carolyn P. Medina, Michael A. Gamboli, Partridge, Snow & Hahn LLP, Providence, RI, for Defendant.

ORDER

WILLIAM E. SMITH, United States District Judge.

The Report and Recommendation of United States Magistrate Judge David L. Martin filed on February 14, 2007, in the above-captioned matter is accepted pursuant to Title 28 United States Code § 636(b)(1). Defendant's Motion for Summary Judgement is GRANTED.

REPORT AND RECOMMENDATION

DAVID L. MARTIN, United States Magistrate Judge.

Before the Court is Defendant's Motion for Summary Judgment (Document ("Doc.") # 11) ("Motion for Summary Judgment" or "Motion"). The Motion has been referred to me for preliminary review, findings, and recommended disposition pursuant to 28 U.S.C. § 636(b)(1)(B). After reviewing the filings, listening to oral argument, and performing independent research, I recommend that the Motion be granted.

Facts

Plaintiff Siesta Sol, LLC ("Siesta Sol"), a Florida corporation, is a supplier of apparel products and specialty items which are sold on a seasonal basis. See Affidavit in Support of Opposition to Motion for Summary Judgment (Doc. # 16) ("Kaplan Aff.") ¶¶ 1-2. From 2001 to 2004 Siesta Sol's major customer was Eckerd stores ("Eckerd"), id. ¶¶ 3, 5, although the two companies never entered into a written agreement, see Defendant's Statement of Undisputed Material Facts ("DSUF") ¶ 4. In July 2004 Eckerd was acquired by the Jean Coutu Group (PJC) USA ("Jean Coutu") which also operates Defendant Brooks Pharmacy, Inc. ("Defendant" or "Brooks"). See DSUF ¶ 5.

In November 2004, at the request of Brooks, Siesta Sol met with representatives from Brooks. See Kaplan Aff. ¶ 7. The Brooks representatives included two persons with whom Siesta Sol had dealt when the two were employed by Eckerd. See Kaplan Aff. ¶ 7. At this meeting there was a general discussion of the working relationship which existed between Siesta Sol and Eckerd, but nothing was said at the meeting regarding purchases for 2005. Id.

In January 2005, Brooks requested that Siesta Sol propose a spring seasonal apparel program for 1,406 Eckerd stores. See Kaplan Aff. ¶ 8; DSUF ¶ 8. The request was made by Brooks' representative, Donald Poitras.¹ See Kaplan Aff. ¶ 8. Siesta Sol submitted a proposal for a spring program which was accepted by Brooks. See DSUF ¶ 9; Kaplan Aff. ¶ 8. Siesta Sol required Brooks to confirm in writing the material terms of the agreement relative to the spring program, and Brooks did so. See DSUF ¶ 9.

On February 23, 2005, representatives of Brooks and Siesta Sol met again at Brooks' request. See Kaplan Aff. ¶¶ 10-11. In a meeting which lasted over three hours, Siesta Sol's representatives discussed the business which they planned to do with Brooks for calendar year 2005. See Kaplan Aff. ¶ 11. The business included the spring apparel program which had already commenced, as well as the summer, fall, and holiday programs. See id. Additional programs were discussed, but the "core business" of the summer, fall, and holiday programs was the focus of the meeting. See id. Siesta Sol presented Brooks with a document, entitled "Year at a Glance," which identified items to be sold, the price of some of the items, shipment dates, and other information. See id.; id., Exhibit ("Ex.") 2 (Year at a Glance).

According to Siesta Sol, during the meeting, Mr. Timothy Porter ("Mr. Porter") of Brooks "made it clear that Siesta Sol would be the vendor for the 1,406 Eckerd Stores for the remainder of the year, those being the same 1,406 stores supplied by Siesta Sol in the spring 2005 apparel program." Kaplan Aff. ¶ 12. Mr. Porter also stated "that the business dealings between Siesta Sol and Eckerd would `stay the same' for 2005 as between Siesta Sol and Brooks,"² id. ¶ 13, "that another company was supplying Brooks stores other than the 1,406 stores being serviced by Siesta Sol," id. ¶ 12, and "that 2006 business was not assured for Siesta Sol but would be based on the 2005 performance," id. Siesta Sol's representatives came away from the February 23, 2005, meeting believing that the relationship between Siesta Sol and Brooks had been solidified for the calendar year 2005. Id. ¶ 14; see also id., Ex. 4 (e-mail from Eltschlager to Kaplan of 3/10/05).

In March and April of 2005, Siesta Sol supplied Brooks' 1,406 Eckerd stores with summer apparel merchandise, in the quantities and at the prices which had been agreed to at the February 23rd meeting. See Kaplan Aff. ¶ 14. This was the same summer apparel program which Siesta Sol had supplied in past years to the Eckerd stores. Id.

On May 6, 2005, Siesta Sol's sales representatives, Bill and Pam Eltschlager (the "Eltschlagers"), sent an e-mail to Mr. Porter at Brooks, requesting an appointment for the week of May 16th "to meet to review ideas for Fall program." Affidavit of Timothy Porter (Doc. # 13) ("Porter Aff."), Ex. 5 (e-mails). Mr. Porter replied on May 9, 2005, by e-mail:

I will be available in mid June for a meeting. Until that time we will keep in touch via phone and email. Please contact at any time. The apparel program is still in development. The timing for a meeting will be much better at that date.

Porter Aff., Ex. 5 (e-mails).

This e-mail apparently caused the Eltschlagers to become concerned because on May 11th they sent Mr. Porter the following e-mail:

We need to discuss the items listed below³ asap by e-mail or by phone. It is important that we discuss your commitment to the apparel program. Please arrange an appointment at your earliest convenience.

In your earlier e-mail, you stated that the apparel program is still in development. When Rich [Kaplan] and I met with you on February 23, we had the understanding that we would be the supplier for all of these programs this year. Is this correct? We need to make the commitment on the inventory for these programs at this time to enable timely delivery of the quality merchandise your customers expect. We look forward to hearing from you.

Kaplan Aff., Ex. 5 (e-mails).

Mr. Porter responded the following day, May 12th, in an e-mail which stated:

Siesta Sol is the supplier for the programs you are currently sending stores. The program in development is one geared to all stores which the Siesta Sol will be a compliment to, just as you are now. I hope there is no confusion in this. Please contact me at your earlier convenience.

Kaplan Aff., Ex. 5. Siesta Sol interpreted this response to mean that it would continue to supply the 1,406 Eckerd stores for the balance of the year, consistent with the agreement which Siesta Sol believed had been reached at the February 23, 2005, meeting. See Kaplan Aff. ¶ 17.

Two weeks later, on May 26, 2005, Brooks notified Siesta Sol that it had decided to terminate the relationship, DSUF ¶¶ 13-14, and that Brooks would not accept the fall or holiday apparel programs from Siesta Sol, see Kaplan Aff. ¶ 20. Mr. Poitras allegedly stated to Siesta Sol's Chief Executive Officer, Richard Kaplan ("Mr. Kaplan"), on or about June 10, 2005, that "we (Brooks) may have misled you." Id. ¶ 21. Siesta Sol continued to receive restocking orders on the summer apparel program until June 24, 2005. Id. ¶ 20.

Travel

Siesta Sol filed the instant action for breach of contract (Count I) and promissory estoppel (Count II) on September 21, 2005. The instant Motion for Summary Judgment was filed on July 6, 2006. See Docket. Siesta Sol filed its opposition to the Motion on July 20, 2006, and Brooks responded with a reply memorandum on August 3, 2006. See id. The Court conducted a hearing on the Motion on August 16, 2006, and, thereafter, took the matter under advisement. See id.

Summary Judgment Standard

"Summary judgment is appropriate if `the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.'" Commercial Union Ins. Co. v. Pesante, 459 F.3d 34, 37 (1st Cir.2006)(quoting Fed. R.Civ.P. 56(c)); accord. Kearney v. Town of Wareham, 316 F.3d 18, 21 (1st Cir. 2002). "A dispute is genuine if the evidence about the fact is such that a reasonable jury could resolve the point in the favor of the non-moving party. A fact is material if it carries with it the potential to affect the outcome of the suit under the applicable law." Santiago-Ramos v. Centennial P.R. Wireless Corp., 217 F.3d 46, 52 (1st Cir.2000)(quoting Sánchez v. Alvarado, 101 F.3d 223, 227 (1st Cir.1996)).

In ruling on a motion for summary judgment, the court must examine the record evidence "in the light most favorable to, and drawing all reasonable inferences in favor of, the nonmoving party." Feliciano de la Cruz v. El Conquistador Resort & Country Club, 218 F.3d 1, 5 (1st Cir.2000)(citing Mulero-Rodriguez v. Ponte, Inc., 98 F.3d 670, 672 (1st Cir. 1996)). "[W]hen the facts support plausible but conflicting inferences on a pivotal issue in the case, the judge may not choose between those inferences at the summary judgment stage." Coyne v. Taber Partners I, 53 F.3d 454, 460 (1st Cir.1995). Furthermore, "[s]ummary judgment is not appropriate merely because the facts offered by the moving party seem more plausible, or because the opponent is unlikely to prevail at trial. If the evidence presented is subject to conflicting interpretations, or reasonable men might differ as to its significance, summary judgment is improper." Gannon v. Narragansett Elec. Co., 777 F.Supp. 167, 169 (D.R.I.1991) (citation and internal quotation marks omitted).

The non-moving party, however, may not rest merely upon the allegations or denials in its pleading,...