JOHN M. BODENHAUSEN, Magistrate Judge.
This matter is before the Court on Plaintiff Surgical Instrument Manufacturers, Inc.'s ("SIM") Motion for Summary Judgment. (ECF No. 20) Defendant Atlas Spine, Inc. filed a Memorandum in Opposition (ECF No. 25) and SIM filed a Reply (ECF No. 28) thereto. All matters are pending before the undersigned United States Magistrate Judge, with the consent of the parties, pursuant to 28 U.S.C. § 636(c). For the reasons set forth below, the motion will be granted.
The present matter stems from a contract dispute between SIM and Atlas Spine. As its name indicates, SIM manufactures surgical instruments. SIM and Atlas Spine entered into an Agreement governing the terms under which SIM would manufacture and deliver surgical instruments and other products to Atlas Spine, and Atlas Spine would pay SIM for the products ordered. Atlas Spine ordered products from SIM by conveying orders via e-mail, and SIM would send invoices to Atlas Spine. The present dispute involves Atlas Spine's orders in November and December 2013. SIM contends that it delivered all of the required products (except for three invoices), and Atlas Spine failed to pay amounts due under the invoices. SIM filed a Complaint requesting relief in the form of monetary damages in the amount of $190,848.83 for breach of contract (Count I), action on account (Count II), and in the alternative, quantum meruit in the amount of $187,624.40, the price of the products delivered (Count III).
SIM filed a summary judgment motion requesting the Court to enter judgment for breach of contract and action on account totaling $237,666.67. This amount reflects $190, 848.83 owed in principal plus $46,711.94 in prejudgment interest accrued through July 22, 2015. Additionally SIM seeks prejudgment interest accruing until judgment is entered at a per diem rate of $94.12 after July 22, 2015,
In response, Atlas Spine argues that a genuine issue of material fact exists regarding the amount of monies due and owing to SIM. Atlas Spine contends that SIM did not fully perform its obligations due to certain nonconforming goods which were either returned to SIM or were scraped. Specifically, Atlas Spine claims that it should not be required to pay $3,224.43 for thirty-eight units of non-conforming products listed on invoice # 140353 (item #10671), # 140359 (item #10672), and # 140536 (item # 70413 and #70422). Atlas Spine argues that these particular products were scrapped due to non-conformity and invoice # 140186 (item #10756) because the products were returned to SIM.
Viewing all facts and drawing all reasonable inferences in the light most favorable to the nonmoving party, the Court sets forth the following facts:
On April 23, 2012, SIM and Atlas Spine entered into an Agreement governing the terms under which SIM would manufacture and deliver surgical instruments and other products to Atlas Spine, and Atlas Spine would pay SIM for the products ordered. (ECF No. 22-2 at 1, Walter Aff. at ¶ 7) SIM is a Missouri corporation with its principal place of business in St. Louis, Missouri. Atlas Spine is a Florida corporation with its principal place of business in Jupiter, FL. (ECF No. 1 at ¶¶ 1, 3)
Both SIM and Atlas Spine signed the April 23, 2012, Agreement. The Agreement sets out the terms under which Atlas Spine would procure services and/or materials from SIM. (ECF Nos. 22-2/ 25-2) The Agreement provides that Atlas Spine is to pay SIM for the products covered by each invoice within thirty days after the date of each of the invoices. (ECF Nos. 22-1 at ¶ 22, 22-2/22-5 at ¶ 3) The Agreement contemplated the possibility that Atlas Spine might reject some goods. The Inspection of Goods; Rejection of Goods and Revocation of Acceptance paragraph provides as follows:
(ECF Nos. 22-2/22-5 at ¶ 17) The Agreement also provides that SIM may refuse to make further shipments of products to Atlas Spine should a balance remain outstanding for more than 30 days after Atlas Spine's receipt of an invoice. (
Pursuant to the terms of the Agreement, the obligations on the invoices bear interest of 1.5% per month or 0.0493% per diem. (ECF Nos. 22-1 at ¶ 27, 22-2 at ¶¶ 2-3/25-2 at ¶¶ 2-3)
Pursuant to the terms of the Agreement, Atlas Spine is obligated to pay costs of collection including attorney's fees. SIM has retained counsel to represent SIM in collection of the outstanding obligations owed under the invoices pursuant to the Agreement.
Under the Agreement, Atlas Spine conveyed purchase orders to SIM via electronic mail. Atlas Spine was allowed to order goods on credit. (ECF Nos. 22-1 at ¶ 10, 22-22 at 14) Upon receipt of a purchase order, SIM agreed to manufacture and deliver the products ordered by sending Atlas Spine an electronic mail message that included an Order Acknowledgement, along with SIM's Standard Terms and Conditions of Sale on Credit ("Terms and Conditions"). (ECF Nos. 22-1 at ¶¶ 11-12, 22-22 at 14-15, 22-7 at 4-9) SIM also sent invoices to Atlas Spine for the price of the products ordered. (ECF Nos. 22-8; 22-11, 22-14, 22-17, 22-20) SIM's Terms and Conditions provide that all payments are due net thirty days from receipt of products and invoice, and that SIM reserves the right to refuse to make further shipments should there be any balance outstanding for more than thirty days after Atlas Spine's receipt of an invoice. (ECF No. 22-7 at 5) The present dispute relates to purchase orders from Atlas Spine in November and December 2013. Atlas Spine has not paid SIM for the products listed in the affected purchase orders and invoices. (ECF Nos. 22-1 at ¶ 14, 22-3, 22-22 at 55)
Atlas Spine accepted delivery of the SIM products listed on the invoices and never properly rejected any of the SIM products under the invoices pursuant to the Agreement. (ECF No. 22-1 at ¶¶ 20-21) SIM delivered all the products listed on the invoices except for the products listed on invoice #141118 dated May 30, 2014, # 141119 dated May 30, 2014, and # 141248 dated June 18, 2014, because of Atlas Spines's nonpayment for other products previously delivered. (ECF No. 22-1 at ¶ 19) The non-payments at issue relate to five purchase orders. (ECF No. 22-1 at 5-8)
Atlas Spine submitted Purchase Order 13-11-012 on November 6, 2013. (ECF Nos. 22-1 at ¶ 18, 22-6-7) SIM manufactured the products ordered and delivered the products to Atlas Spine. SIM conveyed invoice # 140224 (January 22, 2014) to Atlas Spine, and this invoice remains unpaid. (ECF Nos. 22-1 at ¶¶ 40, 42, 22-8) Atlas Spine admits that Purchase Order 13-12-012 was conveyed to SIM; that SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine; that the products listed on the purchase order were manufactured by SIM and delivered to Atlas Spine; and that Atlas Spine has not paid for the products. (ECF No. 26 at ¶¶ 22-26)
Atlas Spine submitted Purchase Order 13-11-013 on November 7, 2013. (ECF No. 22-9) On November 8, 2013, SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine. (ECF Nos. 22-1 at ¶ 45, 22-10) The products listed on invoice # 140186 dated January 17, 2014, invoice # 140204 dated January 20, 2014, invoice # 140221 dated January 21, 2014, and invoice # 140251 dated January 24, 2014, were manufactured by SIM and delivered to Atlas Spine. (ECF Nos 22-1 at ¶¶47-48) SIM specifically manufactured for Atlas Spine the products listed on invoice # 141118 dated May 30, 2014, invoice # 141119 dated May 30, 2014, and invoice # 141248 dated June 18, 2014, but the products were not delivered to Atlas Spine, due to previous non-payments and the outstanding balance owed on Atlas Spine's account in the amount of $38,348.98. (
Atlas Spine submitted Purchase Order 13-11-064 on November 26, 2013. (ECF Nos. 22-1 at ¶ 54, 22-12) On December 2, 2013, SIM conveyed by electronic mail an Order Acknowledgement and Terms and Conditions to Atlas Spine. (ECF Nos. 22-1 at ¶ 56, 22-13) SIM manufactured and delivered to Atlas Spine the products listed on invoice # 140217 dated January 21, 2014, invoice # 140234 dated January 23, 2014, invoice # 140252 dated January 24, 2014, invoice # 140266 dated January 28, 2014, invoice # 140273 dated January 29, 2014, invoice #140283 dated January 30, 2014, invoice # 140292 dated January 31, 2014, invoice # 140310 dated February 4, 2014, and invoice # 140331 dated February 6, 2014, but the invoices remain unpaid in the total amount of $47,231.61. (ECF Nos. 22-1 at ¶ 61, 22-14) Atlas Spine admits that Purchase Order 13-11-064 was conveyed to SIM; that SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine; that the products listed on the order were manufactured by SIM and delivered to Atlas Spine; and that Atlas Spine has not paid for the products. (ECF No. 26 at ¶¶ 40-48)
Atlas Spine submitted Purchase Order 13-12-011 on December 6, 2013. (ECF Nos. 22-1 at ¶ 63, 22-15) On December 9, 2013, SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine. (ECF Nos. 22-1 at ¶ 66, 22-16) SIM manufactured and delivered to Atlas Spine the products listed on invoice # 140368 dated February 11, 2014, invoice # 140372 dated February 12, 2014, invoice # 140380 dated February 13, 2014, invoice # 140412 dated February 18, 2014, invoice # 140421 dated February 19, 2014, invoice # 140441 dated February 21, 2014, invoice # 140453 dated February 24, 2014, invoice # 140487 dated February 26, 2014, invoice # 140497 dated February 27, 2014, invoice # 140522 dated March 3, 2014, invoice # 140527 dated March 4, 2014, and invoice # 140536 dated March 5, 2014, but the invoices remain unpaid in the amount of $67,249.84. (ECF Nos. 22-1 at ¶ ¶67, 70, 22-17) Atlas Spine admits that Purchase Order 13-12-011 was conveyed to SIM, that SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine, that the products listed on the order were manufactured by SIM and delivered to Atlas Spine, and that Atlas Spine has not paid for the products. (ECF No. 26 at ¶¶ 49-57)
Atlas Spine submitted Purchase Order 13-12-019 on December 11, 2013. (ECF Nos. 22-1 at ¶ 74, 22-18) On December 19, 2013, SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine. (ECF Nos. 22-1 at ¶74, 22-19) SIM manufactured and delivered to Atlas Spine the products listed as invoice # 140267 dated January 28, 2014, invoice # 140353 dated February 10, 2014, and invoice # 140359 dated February 11, 2014, but the invoices remain unpaid in the amount of $22,105.52. (ECF Nos. 22-1 at ¶¶ 76, 79, 22-20) Atlas Spine admits that Purchase Order 13-11-013 was conveyed to SIM; that SIM conveyed an Order Acknowledgement and Terms and Conditions to Atlas Spine; that the products listed on the order (except those listed in Invoice # 14118, # 14119, and # 141248) were manufactured by SIM and delivered to Atlas Spine, and that Atlas Spine has not paid for the products. (ECF No. 26 at ¶¶ 58-66)
On June 19, 2014, SIM's counsel sent a letter to Atlas Spine demanding payment of the outstanding obligations under the relevant invoices to SIM. (ECF Nos. 22-1 at ¶ 33, 22-5) The outstanding invoices are summarized on SIM's account statement dated July 10, 2014; the total unpaid obligation shown is $190,848.73. (ECF Nos. 22-1 at ¶¶ 24, 26, 22-3) Atlas Spine's A/P Aging QuickZoom (accounts payable) reflects an identical outstanding amount of accounts payable to SIM. (ECF No. 22-21) To date, Atlas Spine has not paid the invoices within the terms of the Agreement. (ECF No. 22-1 at ¶¶ 23, 35)
Atlas Spine received all of the products listed on the invoices except for the products in invoice # 141118, dated May 30, 2014, charged at $1,205.58, invoice # 141119, dated May 30, 2014, charged at $1,206.78, and invoice # 141248, dated June 18, 2014, charged at $5,117.84, which were specifically manufactured for Atlas Spine but not delivered to Atlas Spine, due to previous non-payments and the outstanding balance owed.
Rule 56 of the Federal Rules of Civil Procedure provides that a court may grant summary judgment if all of the information before the court shows "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.
In considering motions for summary judgment, courts view the facts in the light most favorable to the nonmoving party.
In Missouri,
SIM and Atlas Spine entered into an Agreement on April 23, 2012, governing a contractual relationship between the two parties whereby Atlas Spine would order and purchase products from SIM. The Agreement was clear and valid and defined the contractual relationship between SIM and Atlas Spine governing the product orders. It is undisputed that SIM performed its obligations, even though Atlas Spine attempts to create a genuine issue of material fact by asserting that certain items were either scraped or returned to SIM.
In his affidavit, Mr. Douglas specifically identifies for the first time non-conforming products. SIM requests that Watson's affidavit not be considered inasmuch as the affidavit contradicts his prior deposition testimony. "Post-deposition contradictory affidavits are admitted only when the prior deposition testimony shows confusion, and the subsequent affidavit helps explain the contradiction."
The Court concludes as a matter of law that SIM and Atlas Spine had a contractual relationship by way of the Agreement entered into by the parties. Here, SIM has shown by the undisputed pleadings and documentary evidence that it supplied the products ordered by Atlas Spine,
SIM has pled a claim for action on account in Count II and, alternatively, a claim for quantum meruit in Count III of its Complaint. Because the Court is entering judgment in favor of SIM and full relief was granted on Count I, the breach of contract claim, the Court need not address these claims and will dismiss them without prejudice.
SIM asks the Court to award prejudgment interest in the amount of $54,618.02. Atlas Spine opposes any award of prejudgment interest, arguing that no interest can be awarded on unliquidated claims. Atlas Spine argues that, because the amount owing was not "liquidated," SIM is not entitled to any award of prejudgment interest. SIM responded by arguing the each invoice evidenced a specific amount owed, and Atlas Spine never objected to the amounts owed on the invoices so the claims are liquidated.
Prejudgment interest is a matter of substantive state law.
Mo. Rev. Stat. § 408.020 For prejudgment interest to be awarded, the claim for damages must be liquidated.
"Under Missouri law, a defendant's denial of liability or challenge to the amount claimed on a contract will not alter the fact that the amount claimed by the plaintiff is sufficiently ascertainable to require the award of prejudgment interest."
Here, each invoice evidenced the amount owed, Atlas Spine never objected to the amount owed or questioned whether the claims were unliquidated until the oral argument in this Court. In June 2014, counsel for SIM sent a demand letter to Atlas Spine requesting payment of the outstanding obligations to SIM. Likewise, the outstanding invoices are summarized on SIM's account statement dated July 10, 2014, with the total unpaid obligation shown as $190,848.73. Indeed, Atlas Spine's A/P Aging QuickZoom reflects an identical outstanding amount of accounts payable to SIM. The fact that Atlas Spine may have disputed the conformity of some of the products delivered does not make SIM's claim unliquidated or unascertainable. As explained above, Atlas Spine failed to properly reject any of the goods pursuant to the Agreement. Based on the foregoing, the Court finds the amount of payment due was the amount reflected on the face of each invoice. Thus it cannot be said that the amount of damages was not ascertainable. Accordingly, the Court will include an award of prejudgment interest in the amount of $54,618.02.
A separate Judgment in accordance with this Memorandum and Order is entered this same date.