VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This cause comes before the Court upon two motions for summary judgment. Plaintiff TRX Integration, Inc. moves for summary judgment as to Count I of Defendant Stafford-Smith, Inc.'s Counterclaim and Count II of the Amended Complaint. (Doc. # 58). Stafford-Smith moves for summary judgment as to Counts I and II of the Amended Complaint. (Doc. # 62). Both parties filed their respective responses (Doc. ## 64, 66) and replies (Doc. ## 65, 68). For the reasons that follow, the Court denies both motions for summary judgment.
TRX owns and licenses TRX Enterprise™, which is software designed to meet the needs of companies in the food service industry. (Doc. # 50 at ¶¶ 2-3). SSI is a corporation that supplies food-service equipment, such as stoves, cabinets, and walk-in coolers found in commercial and industrial kitchens. (Doc. # 18 at ¶ 3). Sometime in the Spring of 2014, SSI was referred to TRX and on June 26, 2014, TRX submitted a proposal to SSI for licensing TRX Enterprise™ and services related thereto. (Doc. ## 18 at ¶ 4; 50 at ¶ 5). The proposal stated:
The following proposal covers these areas:
(Doc. # 62-1 at 3).
The proposal laid out the cost for licensing TRX Enterprise™ and an estimate for the implementation thereof, which included training and data migration. (
SSI thereafter executed the Written Agreement to license TRX Enterprise™ and TRX accepted the Written Agreement through its course of conduct. (Doc. ## 43 at 13, ¶ 4; 44 at ¶ 4; 62-1 at 7-10). The Written Agreement allows TRX to terminate the Written Agreement, but SSI is not afforded the same right thereunder. (Doc. # 62-1 at 8, ¶ 4). In addition, the Written Agreement limits the warranties provided to SSI to those enumerated in the Written Agreement. (
Furthermore, under the Oral Agreement, a training company had to be set up as part of the implementation of TRX Enterprise™. (Doc. # 51-3 at 38:16-39:10). As to the establishment of the training company, TRX and SSI had shared responsibilities. See (Doc. # 51-5 at 230:8-10, 232:6-25).
Relatedly, the implementation team at SSI consisted of Phyllis Rowe, Cassie Blodgett, Andy McHugh, David M. Stafford, Jr., and Sue Grusell. (Doc. # 64-1 at 17, ¶ 9). In her affidavit, Rowe, the team leader at SSI for the implementation of TRX Enterprise™, stated that between July 13, 2014, and July 16, 2014, TRX sent representatives to SSI's headquarters to meet with SSI's implementation team and to collect information. (
The record is unclear as to whether SSI performed its duties under the Oral Agreement as to the establishment of a training company. For example, Rowe testified during her deposition that SSI did not owe TRX any information or work vis-à-vis the training company at the time SSI terminated the contract. (Doc. # 51-4 at 35:6-13). Similarly, Ammon testified during his deposition that SSI had completed one of its duties as to the training company; however, he was unsure if SSI actually informed TRX of that fact. (Doc. # 51-6 at 103:13-104:18). Notably though, later in her deposition, Rowe stated that, from TRX's position, SSI still had not completed all its duties as to the training company. (Doc. # 51-5 at 231:21-233:1). In addition, McHugh stated in his deposition that, as of the date that SSI terminated the contract, SSI still owed TRX information necessary for the training company to be finalized. (Doc. # 51-3 at 232:8-233:11).
Then, on March 12, 2015, SSI sent a letter to TRX informing TRX that SSI was terminating the contract. (Doc. # 62-1 at 12-13). Thereafter, on March 23, 2015, TRX filed suit against SSI in the Sixth Judicial Circuit, in and for Pinellas County, Florida. (Doc. # 2). SSI subsequently removed the action to this Court on the basis of diversity jurisdiction. (Doc. # 1). TRX filed an Amended Complaint, which brings two counts: breach of contract (Count I) and declaratory relief (Count II). (Doc. # 30). SSI filed its Answer and countersued TRX for breach of contract. (Doc. # 43). The parties have each moved for summary judgment and the motions are ripe for review.
Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A factual dispute alone is not enough to defeat a properly pled motion for summary judgment; only the existence of a genuine issue of material fact will preclude a grant of summary judgment.
An issue is genuine if the evidence is such that a reasonable jury could return a verdict for the non-moving party.
If there is a conflict between the parties' allegations or evidence, the non-moving party's evidence is presumed to be true and all reasonable inferences must be drawn in the non-moving party's favor.
Although both parties seek summary judgment as to Count II of the Amended Complaint, "each side must still establish the lack of genuine issues of material fact and that it is entitled to judgment as a matter of law."
The threshold issue this Court must decide is whether the parties entered into two agreements that should be read independently of each other or whether the two agreements should be read together as one single contract. After careful review, the Court determines that the Written Agreement and the Oral Agreement should be read as constituting one contract.
"Under Florida law, where two or more documents are executed by the same parties, at or near the same time and concerning the same transaction or subject matter, the documents are generally construed together as a single contract."
Upon review of the Written Agreement and Oral Agreement, the Court determines that the Agreements are to be read as one contract. Both the Written and Oral Agreements stem from the same proposal. (Doc. # 62-1 at 3-6). Although the Written Agreement does not refer to the Oral Agreement, by the same token, the Written Agreement does not contain an integration clause. (
With respect to whether the Agreements concern the same transaction or subject matter, the relation between the Written and Oral Agreements is of some consequence. If the Agreements are interrelated, this would weigh in favor of finding the Agreements to be one contract. In contrast, if the Agreements are distinct, that would weigh against finding the Agreements to be one contract. Thus, the position the parties have adopted as to whether the Agreements are interrelated is noteworthy. Unfortunately, the parties' respective positions do not tell the Court much.
To begin with, the Court notes that SSI submits TRX should be estopped from contending the two Agreements are not interrelated given TRX's argument in opposition to SSI's motion to transfer. (Doc. # 68). However, SSI's argument was not raised until SSI filed its reply. As such, the Court declines to entertain SSI's submission on this point.
To summarize the parties' respective positions, TRX argues the Agreements are related (
The analysis does not end there, however. The Court must next determine whether there was a material breach of the contract and, if so, which party breached first.
SSI does not argue that TRX breached the Written Agreement portion of the contract. (Doc. ## 43 at 15, ¶ 16; 62 at 5; 68 at 5 (stating, "[t]o be clear, SSI contends that TRX substantially breached the implementation contract and that the licensing contract[, i.e., the Written Agreement,] was dependent upon or interrelated with the Ancillary Services[, i.e., the Oral,] Agreement")). Thus, the crux of the matter is which party first breached the Oral Agreement portion of the contract.
To determine whether there was a material breach of the Oral Agreement portion of the contract, the Court must first know the terms of the Oral Agreement. However, the record does not contain much in the way of what the terms of the Oral Agreement were. What the record does reflect is that the parties agreed a training company would have to be established. (Doc. ## 43 at 16, ¶ 18(a); 44 at ¶ 18(a)).
Under the Oral Agreement, and specifically as to the establishment of a training company, the record shows that TRX and SSI had shared responsibilities.
Furthermore, Ammon testified during his deposition that SSI had completed one of its duties as to the training company but that he was unsure if SSI actually informed TRX of that fact. (Doc. # 51-6 at 103:13-104:18). For his part, McHugh testified that as of the date SSI terminated the contract, SSI still owed TRX information necessary for the training company to be finalized. (Doc. # 51-3 at 232:8-233:11). That SSI's president, and now CEO, stated it was his "position that both sides had issues . . . . No one's lily white in [sic] either end of," (Doc. # 51-1 at 13:19-20), only serves to highlight the importance of answering the question of which party breached first. But, that is a question which the Court cannot answer at summary judgment given the issue of material fact discussed above.
Given this genuine issue of material fact, the Court cannot grant either motion for summary judgment, because each motion turns on whether there was a material breach of the Oral Agreement portion of the contract and, if so, which party breached first. As shown above, the record is unclear as to that question and the resultant genuine issue of material fact precludes summary judgment.
Accordingly, it is
(1) Plaintiff TRX Integration, Inc.'s Consolidated and Abridged Motion for Summary Judgment (Doc. # 58) is
(2) Defendant Stafford-Smith, Inc.'s Motion for Summary Judgment (Doc. # 62) is