Digital Advertising Displays Inc v. Harbor Industries, Inc
1:20-cv-02886
D. Colo.Jul 19, 2022Background
- DAD and Harbor had a long-term business relationship (1998–2014) under which DAD earned a 5% commission on certain interactive entertainment displays Harbor fabricated. Harbor failed to perform the required accounting and never paid commissions.
- The parties continued working together; Harbor fabricated IEDs for DAD starting in 2011 and issues arose with fabrication quality.
- In November 2013, Harbor met with DAD and assured DAD an accounting would be performed; later Harbor’s president allegedly admitted negligence and the parties negotiated a settlement.
- On July 7, 2014, Harbor president Tim Parker emailed DAD owner Jeff Storey confirming a settlement to compensate DAD with up to $100,000 in manufacturing goods/services; the overdue accounting was not mentioned in that email.
- DAD sued (filed July 6, 2020) alleging two breach-of-contract theories: (1) Harbor breached the sales-commissions contract by failing to perform the accounting and pay commissions; and (2) Harbor breached the July 2014 settlement by failing to provide $100,000 in goods/services. Harbor moved for summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether DAD’s breach claim re: the sales-commissions contract is viable | Commissions contract existed; Harbor failed to do accounting and pay 5% commissions | Either no enforceable contract or claim is time-barred by six-year SOL | Claim accrued by ~Nov 2013; six-year SOL expired Nov 2019; DAD filed July 2020. Summary judgment granted for Harbor (commission claim time-barred). |
| Whether DAD’s breach claim re: the July 2014 settlement is viable | Parties made a July 2014 settlement (confirmed by Parker’s July 7 email) obligating Harbor to provide $100,000 in goods/services; Harbor breached | No partnership/contract; claim time-barred | Evidence (Storey affidavit and Parker email) creates a genuine dispute that a July 7, 2014 settlement existed and accrued July 2014; suit filed within six years. Summary judgment denied as to settlement claim. |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary-judgment standard re: genuine issues for trial)
- Adler v. Wal-Mart Stores, Inc., 144 F.3d 664 (10th Cir.) (nonmovant must set forth specific admissible facts at summary judgment)
- Jaramillo v. Adams Cnty. Sch. Dist. 14, 680 F.3d 1267 (10th Cir.) (moving party must provide significantly probative evidence; use affidavits/depositions/exhibits)
- Murray v. Guideone Specialty Mut. Ins. Co., 194 P.3d 489 (Colo. App.) (reasonable-diligence accrual rule; no reward for denial/self‑induced ignorance)
- Crosby v. Am. Family Ins. Co., 251 P.3d 1279 (Colo. App.) (accrual focuses on discovery of facts, not realization of legal claims)
- Bones v. Honeywell Int’l, Inc., 366 F.3d 869 (10th Cir.) (conclusory statements without competent evidence are insufficient at summary judgment)
