DANIEL G. MARTIN, Magistrate Judge.
Plaintiff Reinhart Foodservice, LLC ("Reinhart") brings this lawsuit against Defendants Chicago Roadhouse Concepts, LLC, Texas Corral Restaurants II, Inc., Texcor, Inc., and T.C. of Kalamazoo, Inc. ("Defendants") alleging a single claim of breach of contract against each Defendant. Reinhart alleges that Defendants violated an agreement to pay for food and restaurant supplies purchased from Reinhart. Reinhart has moved for summary judgment on its breach of contract claim. For the reasons explained below, Reinhart's motion [57] is granted in part and denied without prejudice in part as to its request for attorneys' fees.
Reinhart says it is the 4
(Doc. 57-3 at 2, 4, 6, 8).
For purposes of summary judgment, Reinhart claims that Defendant Chicago Roadhouse L.L.C. d/b/a Amarillo Roadhouse owes the principal sum of sum of $21,176.28 as of February 15, 2013, accrued finance charges from April 1, 2013 to April, 2016 at 1.5% per month in the amount of $11,435.19, for a total amount due of $32,611.47, not including attorney's fees and costs. (Docs. 57-4 at 31-32, 57-5 at ¶¶ 6, 9, 10). Reinhart also claims that Defendant Texcor, Inc. a/k/a Texcor Portage owes the principal sum of sum of $64,270.46 as of February 15, 2013, accrued finance charges from April 1, 2013 to April, 2016 at 1.5% per month in the amount of $34,706.05, for a total amount due of $98,976.51, not including attorney's fees and costs. (Docs. 57-4 at 33, 57-5 at ¶¶ 7, 11, 12).
In their response to Reinhart's Request for Admission No. 2, each Defendant admitted that it has an outstanding invoice with Reinhart as follows: Chicago Roadhouse — $21,176.28; Texcor — Portage — $64,270.46; Texas Corral — Benton Harbor — $54,148.91; Texas Corral — Kalamazoo — $48,380.01. (Docs. 57-3 at 24-25, 57-4 at 34-39). Defendants now deny liability in the sums specified, arguing that Reinhart failed to perform a material part of the Credit Agreements. (Doc. 68 at ¶¶ 6-16).
Summary judgment is appropriate when there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). In determining whether a genuine issue of material fact exists that precludes summary judgment, the Court construes all facts and inferences in the light most favorable to the nonmoving party.
The parties agree that Illinois law governs Reinhart's breach of contract claim. Under Illinois law, to prevail on a breach of contract claim, a plaintiff must show: "`(1) the existence of a valid and enforceable contract; (2) substantial performance by the plaintiff; (3) a breach by the defendant; and (4) resultant damages.'"
In response to Reinhart's summary judgment motion, Defendants claim that they are not responsible for the outstanding balance of the invoices. Defendants argue that Reinhart's breach of an oral agreement to provide steaks aged no less than 28 days excuses Defendants' performance under the Credit Agreements. Defendants contend that they need not pay the amount due under the Credit Agreements because "[u]nder Illinois law, a material breach of a contract will excuse subsequent performance by the other party."
Reinhart contends that Defendants admitted liability and damages for Reinhart's breach of contract claim and therefore, Defendants are not excused from their obligation to perform under the Credit Agreements. The Court agrees that Defendants have admitted that they owe Reinhart $187,975.66 for goods and services provided and cannot ward off summary judgment by now arguing that Reinhart failed to perform a material part of the agreement. Defendants base their argument solely upon affidavits submitted after Reinhart moved for summary judgment, which contradict their prior discovery responses, specifically answers to Reinhart's interrogatories. During discovery, Defendants admitted that Reinhart is owed at least $187,975.66 for goods and services provided by Reinhart under the Credit Agreements. In its interrogatories, Reinhart asked and Defendants answered as follows:
(Doc. 57-3 at 23).
(Doc. 57-4 at 34-39). The cumulative total Defendants admitted is due to Reinhart is $187,975.66.
The Seventh Circuit has "long followed the rule that parties cannot thwart the purposes of Rule 56 by creating `sham' issues of fact with affidavits that contradict their prior" sworn statements.
In response to Interrogatory No. 3, Defendants stated that they do not contend that they owe no further payments to Reinhart for goods and services provided. Defendants were then asked by Interrogatory No. 5 what amounts they contend they owe Reinhart for goods and services and the bases for those amounts. Defendants answered that they owe further payments to Reinhart in the amounts listed at pages 30-35 of their Initial Disclosures. (Docs. 57-3 at 23, 57-4 at 34-39). Nowhere in their answers to Interrogatory Nos. 3-5 did Defendants state that they did not owe Reinhart any amount for the goods and services because Reinhart failed to substantially perform its part of the bargain by delivering nonconforming steaks. Defendants now take the position that they are not responsible for the balance of the invoices because Reinhart did not substantially perform a material part of the agreement.
Defendants' position that Reinhart did not substantially perform a material part of the agreements excusing their performance conflicts with their statements that they do not contend that they owe no further payments to Reinhart and that they owe $187,975.66 to Reinhart. Defendants provide no explanation as to why they now claim that they are not responsible for the outstanding balances of the invoices which were admitted, without qualification, but did not make any reference to Reinhart's failure to substantially perform when Defendants provided interrogatory responses. If Defendants wanted to assert the prior material breach defense they now offer, they should have qualified their responses to the interrogatories accordingly.
Reinhart also seeks finance charges, attorneys' fees, and costs. It is undisputed that the Credit Agreements provide that delinquent amounts are subject to a delinquency charge of 1.5% per month. (Doc. 68 at 2, ¶ 4). Reinhart calculates that Chicago Roadhouse L.L.C. owes finance charges in the amount of $11,435.19, Texcor, Inc. a/k/a Texcor Portage owes finance charges in the amount of $34,706.05, Texas Corral Restaurants, II, Inc. a/k/a Texas Corral — Benton Harbor owes finance charges in the amount of $29,240.41, and T.C. of Kalamazoo, Inc. a/k/a Texas Corral of Kalamazoo owes finance charges in the amount of $26,125.21. (Doc. 57-5 at ¶¶ 9, 11, 13, 16). Defendants do not dispute Reinhart's calculation of the finance charges or offer a different calculation of the finance charges at issue. Thus, Reinhart's request for $101,506.86 in finance charges is granted.
As to attorneys' fees and costs, it is uncontested that Reinhart is entitled to recover attorneys' fees and court costs incurred in collecting a delinquent account. (Doc. 68 at 1-2, &3). Defendants objects to Reinhart's request for attorney's fees as premature because Reinhart has not complied with Local Rule 54.3. The Court agrees that Reinhart's request for attorneys' fees is premature. The parties shall comply with the procedures and deadlines in Local Rule 54.3 in an attempt to agree on attorneys' fees and costs. Reinhart's request for fees is denied without prejudice to reassertion in a motion that complies with Local Rule 54.3, if necessary.
Because the undisputed facts establish that Reinhart is entitled to judgment as a matter of law on its contract claim against each Defendant, its summary judgment motion is granted in part and denied in part without prejudice as to its request for attorneys' fees. The Clerk is directed to enter judgment in favor of Reinhart and against Defendant Chicago Roadhouse Concepts, LLC in the amount of $32,611.47, Defendant Texas Corral Restaurants II, Inc. in the amount of $83,389.32, Defendant Texcor, Inc. in the amount of $98,976.51, and Defendant T.C. of Kalamazoo, Inc. in the amount of $74,505.22.