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2:15-cv-02255
W.D. Tenn.
Sep 2, 2016
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Background

  • Cornerstone (broker) and Prestress (precast fabricator) entered a written hauling Agreement for deliveries from Memphis to the Ole Miss parking garage in April 2014.
  • Agreement specified payment of $550 per load delivered and set $0.00 for canceled deliveries not canceled prior to drivers "departing to Prestress" and $0.00 per hour for long delays.
  • Cornerstone billed Prestress TONU (truck order not used), empty-return, and jobsite shuttle charges across multiple invoices; Prestress refused payment.
  • Cornerstone sued for breach of contract seeking roughly $137,060; Prestress moved for summary judgment.
  • Court analyzed whether the Agreement unambiguously governed TONU, empty-return, and shuttle charges and whether any genuine fact disputes precluded summary judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether TONU charges are payable under the Agreement TONU invoices were not "canceled deliveries" within the contract; fact issues exist about timing of cancellations The contract governs cancellations: deliveries canceled after drivers had departed are $0.00; TONU here were after departure TONU not recoverable; summary judgment for Prestress
Whether empty-return charges are payable under the Agreement Parties intended payment for delivery and return; empty returns were part of services and should be paid at $550 per trip Agreement is silent on returns; plain meaning of "$550 per load delivered" covers only deliveries, not empty-return trips Empty-return charges not covered by Agreement; summary judgment for Prestress
Whether jobsite shuttle charges are payable under the Agreement Prestress requested/agreed to pay shuttles (testimony from trucking company employees) Agreement is silent; any separate agreement is outside the Complaint’s breach-of-Agreement claim Shuttle charges not covered by Agreement; summary judgment for Prestress
Whether genuine disputes of material fact preclude summary judgment Plaintiff contends factual disputes exist as to whether charges fall within Agreement terms Prestress contends the Agreement unambiguously precludes recovery of these charges and Plaintiff concedes some facts at hearing No genuine disputes as to contractual obligation; Court grants summary judgment to Prestress

Key Cases Cited

  • Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC, 758 F.3d 777 (6th Cir. 2014) (summary judgment standard)
  • Am. Copper & Brass, Inc. v. Lake City Indus. Prods., Inc., 757 F.3d 540 (6th Cir. 2014) (genuine dispute definition)
  • Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (standard for genuine issue at summary judgment)
  • Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (initial burden on movant for summary judgment)
  • Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (1986) (inferences for nonmoving party)
  • Bruederle v. Louisville Metro Gov’t, 687 F.3d 771 (6th Cir. 2012) (Rule 56(c) citation requirement for proving/disputing facts)
  • United States ex rel. Compton v. Midwest Specialties, Inc., 142 F.3d 296 (6th Cir. 1998) (district court may interpret unambiguous contract on summary judgment)
Read the full case

Case Details

Case Name: Cornerstone Systems, Inc. v. Prestress Services Industries of Tennessee, LLC
Court Name: District Court, W.D. Tennessee
Date Published: Sep 2, 2016
Citation: 2:15-cv-02255
Docket Number: 2:15-cv-02255
Court Abbreviation: W.D. Tenn.
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    Cornerstone Systems, Inc. v. Prestress Services Industries of Tennessee, LLC, 2:15-cv-02255