2008 WI App 180
court of appeals of
published opinion
Case No.: |
2007AP2857 |
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Complete Title of Case: |
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Plaintiff-Appellant, v. Stroh Die Casting Co., Inc.,
Defendant-Respondent. |
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Opinion Filed: |
November 19, 2008 |
Submitted on Briefs: |
August 28, 2008 |
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JUDGES: |
Brown, C.J., |
Concurred: |
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Dissented: |
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Appellant |
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ATTORNEYS: |
On behalf of the plaintiff-appellant, the cause was
submitted on the briefs of Richard J. Lewandowski and Anthony J. Sievert of Whyte
Hirschboeck Dudek, S.C., of |
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Respondent |
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ATTORNEYS: |
On behalf of the defendant-respondent, the cause was
submitted on the brief of Douglas M. Poland and Rebecca Kathryn Mason of |
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2008 WI App 180
COURT OF APPEALS DECISION DATED AND FILED November 19, 2008 David
R. Schanker Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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Appeal No. |
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STATE OF |
IN COURT OF APPEALS |
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Plaintiff-Appellant, v. Stroh Die Casting Co., Inc.,
Defendant-Respondent. |
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APPEAL
from a judgment of the circuit court for
Before Brown, C.J.,
¶1 BROWN, C.J. Wisconsin Stat. § 802.06(2)(b)
(2005-06)[1]
allows the circuit court to convert a defendant’s motion to dismiss for failure
to state a claim into a summary judgment motion. Here, the circuit court did convert the
motion into a summary judgment motion even though the defendant, Stroh Die
Casting Co., Inc., had not filed an answer.
The plaintiff, Alliance Laundry Systems LLC, claims that such conversion
ran afoul of Wis. Stat. § 802.08,
which requires that the pleadings be complete before a court can review a
summary judgment motion. City
of
Background
¶2 In 1999,
¶3 Much of Stroh’s quotation is blank, with those sections that
are filled out focusing on tooling.
Notations near the top of the quotation reference the project number,
part number, and other codes that Stroh uses.
The bottom has separate sections for “Tooling” and “Castings.” The tooling section lists the casting
modification work and the price. The
castings section is blank; it does not list a quantity or price for individual
rack gears. Also, the “Exceptions and Remarks”
section of the quotation specifically provides, “[t]his proposal includes the
cost to modify the casting die only.”
¶4 The back of the quotation provided Stroh’s warranties and disclosures. It disclaimed all implied warranties, required a thirty day notice of defects, limited Stroh’s liability to repair, replacement, or credit for their return and imposed other specific requirements upon customers making warranty claims.
¶5 The purchase order primarily provides details for the
“Rack.” In the main section of the
purchase order, the form lists the particular item, quantity, units, part
number, and price, and when
¶6 Like Stroh’s quotation, the back of the purchase order
provided
¶7 About eight years later, on August 6, 2007, Alliance filed
this action against Stroh, claiming that Stroh failed “to manufacture on a
consistent basis, a defect-free … ‘rack gear,’” and an “unacceptably high
number of rack gears have failed in use” causing Alliance to incur substantial
warranty repair expenses, significant additional costs over the ensuing five
years, and other damages.
¶8 Stroh responded with a motion to dismiss for failure to state
a claim and attached a memorandum, an affidavit that introduced the quotation
as an exhibit.[2] The affidavit only introduced the quotation;
it did not provide any additional facts about the quotation or Stroh and
¶9 The circuit court, in its notice of hearing on October 26,
2007, alerted the parties that it might convert Stroh’s motion to dismiss into
one for summary judgment. Except
¶10 At the hearing on November 16, 2007, the circuit court granted
Stroh’s motion to dismiss, and in the alternative granted summary judgment for
Stroh. After the court’s ruling,
Procedural Issue
¶11 In this case, the trial court granted summary judgment for
Stroh even though the pleadings were incomplete. The only pleading before the court was
¶12 In summary judgment procedure, the court examines the complaint
to determine if it sets forth a claim for relief, and if it does, the court
examines the answer to determine if it joins issue, and if it does, it
further proceeds to determine the summary judgment on the merits. Hydrite Chem. Co. v.
¶13 The procedure for a motion to dismiss for failure to state a
claim is different. A motion to dismiss
is a pre-answer motion. Wis. Stat. § 802.06(1).
Accordingly, § 802.06(1) extends the time limit for the defendant to file
an answer until after the court denies its motion. The court disposes of a motion to dismiss by
examining the complaint to determine if the facts alleged, if proven, would
constitute a claim for relief. Tower
Special Facilities, Inc. v. Investment Club, Inc., 104
¶14 When the defendant attaches affidavits or other matters outside
the pleadings to its motion to dismiss and the court, in its discretion,
considers these outside matters, the court must convert the defendant’s motion
into one for summary judgment. Wis. Stat. § 802.06(2)(b). This procedure is patterned after the Fed. R. Civ. P. 12(d), so we look to
federal cases and commentary for guidance.
See Lambrecht v. Estate of Kaczmarczyk, 2001 WI 25, ¶2 n.2, 241
¶15 The “speaking” motion and demurrer, which at least in part
spurred the creation of Fed. R. Civ. P.
12(b)(6) and 12(d), followed this procedure in theory; however, its rules and
limitations were undefined. Advisory
Committee Note, Fed. R. Civ. P. 12(b)(6)
(1946).
The 1946 amendments to the Rules included the provision governing
this practice and connecting the motion to dismiss to the summary judgment
rule. See id. Using this approach, courts may review
the defendant’s motion to dismiss and extra-pleading materials to dispose of
the case according to the summary judgment procedure.
¶16 The policy behind this
procedure was to allow federal courts to identify those cases amenable to
prompt disposition. See id. If, instead of converting, the court
granted the motion to dismiss, then the plaintiff would likely still have the
opportunity to amend its complaint, thereby simply delaying ultimate
defeat. See id. So, by converting, courts were able to
more efficiently dispose of cases. See id. Thus, as suggested by the Second Circuit,
“whatever its label or original basis, the motion may be treated as a motion
for summary judgment and disposed of as such.”
¶17 Importantly though, the Advisory Committee to the 1946
amendments particularly emphasized that this procedure does not allow a trial
on the affidavits. Advisory Committee
Note, Fed. R. Civ. P. 12(b)(6)
(1946).
If the extra-pleading materials disclose a genuine issue of material
fact, or if the merits of the extraneous matters are in question, then summary
judgment must be denied.
¶18 Accordingly, when a federal court converts the defendant’s
motion to dismiss to one for summary judgment, the defendant need not file an
answer unless the court denies the converted motion. See,
e.g., Lane Bryant, Inc., 173
F.2d at 564-65;
Notice
¶19
¶20 Wisconsin Stat. § 802.06(2)(b)
requires the court to provide both parties with reasonable notice that it will or might convert a motion to dismiss
into a summary judgment motion, but it does not require the court to request
additional briefs or affidavits. See CTI
of Ne. Wis., LLC, 259
¶21 In Isquith, the plaintiffs, in their memorandum of opposition,
specifically asked the district court to inform them “if and when” it decided
to convert to summary judgment.
¶22 We understand
¶23 While we agree that a circuit court could, and perhaps should,
use such a process, we do not agree that this is the mandated procedure. As we
said, notice depends on the facts in each case and need not state that the
court will, in fact, convert. And here,
the facts are: First, that Stroh
submitted an affidavit and an exhibit outside the pleadings and
¶24
Substantive Issue
¶25 Now that we have decided the circuit court properly treated
Stroh’s motion as one for summary judgment, we must dispose of it
accordingly. Though
¶26 Stroh claims that there is no genuine issue. In Stroh’s view, the answer is governed by
the UCC, which, according to Stroh, determines this to be a “classic battle of
forms.” Stroh posits that, under the
UCC, additional or different terms proposed by an offeree through a standard
form acceptance, such as Alliance’s purchase order, do not become part of the
contract even if they materially alter the initial offer (the quotation),
except in certain well-defined circumstances which we will discuss next. It cites Wis.
Stat. § 402.207 and Manitowoc
Marine Group, LLC v. Ameron Int’l Corp., 424 F. Supp. 2d 1119 (E.D.
Wis. 2006), vacated in part on other
grounds, 2006 WL 1799821, in support.
Stroh notes that its quotation disclaimed all implied warranties, required
a thirty-day notice of defects, limited Stroh’s liability to repair,
replacement or credit for their return and imposed other specific requirements
upon customers making warranty claims.
¶27 According to Stroh, two things had to happen for the purchase
order to prevail. First,
¶28 We agree with Stroh that when a “battle of forms” exists, Wis. Stat. § 402.207 controls, and
the additional or different terms do not become a part of the contract unless
the offerer unequivocally assents.
¶29 We disagree, however, that Stroh’s quotation is the offer and
¶30 But here,
¶31 Other than the parties’ assertions and the conflicting forms,
we have no other evidence to help us decide if Stroh or
¶32 Neither the Wisconsin Statutes nor the U.C.C. expressly define
the term “offer.” Thus, we look to
common law to determine which communication constitutes the offer. See Rich Prods. Corp. v. Kemutec, Inc.,
66 F. Supp. 2d 937, 955-56 (E.D. Wis. 1999) (applying
¶33 Courts often consider a quotation a preliminary step in
negotiations because it does not have the level of detail and completeness of a
typical offer. See Rich Prods. Corp.,
66 F. Supp. 2d at 956; Nickel v. Theresa Farmers Coop. Ass’n,
247
¶34 In this case, a genuine issue of material fact exists as to
whether the quotation was the offer for the actual rack gears. The quotation describes terms relating to
only the account in general and the tooling; the castings section remains
blank. The purchase order describes only
the castings, not the tooling. Thus, we
hold that the quotation is not sufficiently definite as a matter of law, and we
must remand to the fact finder to determine the parties’ intent. Only after the court knows what the offer and
acceptance was can it return to Wis.
Stat. § 402.207 and
By the Court.—Judgment affirmed in part; reversed in part and cause remanded with directions.
[1] Wisconsin Stat. § 802.06(2)(b) states in relevant part:
If on a motion asserting the defense described in par. (a)6. to dismiss for failure of the pleading to state a claim upon which relief can be granted … matters outside of the pleadings are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in s. 802.08, and all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by s. 802.08.
All references to the Wisconsin Statutes are to the 2005-06 version unless otherwise noted.
[2] Stroh
also attached the engineering drawing as an exhibit, but this drawing was
already properly before the court from
[3] Counsel for Alliance cited to a prior unpublished case reversing the same circuit court judge who presided in the instant case and which case also related to the judge’s procedure regarding summary judgment methodology. We admonish counsel for doing so, especially when the case is not relevant to any appellate issue here. We also note that counsel for Stroh cited an unpublished case in its reply brief to the circuit court. Our supreme court has just recently changed Wis. Stat. Rule 809.23 so as to allow citation of unpublished opinions, so long as they are not per curiam opinions, summary dispositions or memorandum orders. But this rule is not effective until July 1, 2009, and, even then, applies only to opinions released by the court of appeals after that date.
[4] We
determine that