Americorp Financial, L.L.C. v. Lansing Pharmacy, L.C.
923 F. Supp. 2d 1023
E.D. Mich.2013Background
- Americorp Financial, L.L.C. sued Lansing Pharmacy, L.C. to recover on two equipment finance agreements for two dispensing systems and on related guaranties by Winters, Winters Pharmacies, Inc., and Winters Companies.
- The agreements required Lansing Pharmacy to make sixty monthly payments; guaranties were unconditional.
- The agreements were amended on June 23, 2010 to modify payment terms.
- Lansing Pharmacy allegedly defaulted on payments beginning May 2011.
- Plaintiff seeks summary judgment on liability and possession of the equipment, with damages to be determined later; Defendants argue good faith and mitigation defenses.
- The court granted in part: liability determined, damages to be addressed after further submissions; potential issues about post-default remedies and cure were left for later consideration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants are liable on the finance agreements and guaranties | Lansing defaulted; amendments did not extinguish liability | Defendants contend bad faith and failure to mitigate damages | Liability established; damages to be determined later |
| Whether Plaintiff acted in good faith and mitigated damages | Plaintiff pursued contract remedies; no duty to substitute remedies absent mutual agreement | Plaintiff failed to mitigate and acted in bad faith | No genuine issue; Plaintiff acted within contract and law; defenses rejected |
| Whether damages and attorney fees can be determined on record | Damages and fees calculable from existing record; sales of equipment acceptable | Need opportunity to challenge disposition of equipment | Damages to be set after objections; court may enter judgment if no timely objections |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (summary judgment standard: movant must show no genuine issue of material fact)
- Calderone v. United States, 799 F.2d 254 (6th Cir. 1986) (summary judgment burden when moving party has burden of proof at trial)
- Pack v. Damon Corp., 434 F.3d 810 (6th Cir. 2006) (nonmovant must cite to record evidence; mere allegations insufficient)
- Sperle v. Michigan Department of Corrections, 297 F.3d 483 (6th Cir. 2002) (admissibility and personal knowledge requirements for affidavits)
- Morris v. Clawson Tank Co., 459 Mich. 256, 587 N.W.2d 253 (Mich. 1998) (damages mitigation under Michigan law)
- Quality Products & Concepts Co. v. Nagel Precision, Inc., 469 Mich. 362, 666 N.W.2d 251 (Mich. 2003) (contract modification requires writing; anti-waiver clauses enforceable)
- State Mutual Life Assurance Co. v. Deer Creek Park, 612 F.2d 259 (6th Cir. 1979) (restrictions on evidence and reliance in summary judgment)