2008 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 12-31-2008 

# E a s te rn Adhesi

ves v . S c ap a N Ame r Inc P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 07-2590

F o llow thi s and a dd it ion al work s at : http://d i git alc ommon s .l a w . vi ll anova . e du/thir dc ir c uit_2008

Thi s de c i sion i s br ou ght t o you for f r e e and ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. It h as be e n a c c ept e d for inclusion in 2008 D e c i sion s b y an authori z e d a dmini s tr at or of V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. F or mor e inform at ion, p le as e c ont a ct Be n j amin . C arl s on@l a

w . vi ll anova . e du . Re c omme nde d C it at ion " Eas t e rn Adhe sive s v

. S cap a N Ame r Inc " (2008). 2008 D e cisio n s . P ape r 24. http://d i git alc ommon s .l a

w . vi ll anova . e du/thir dc ir c uit_2008/24Th e Ho n o r a b l e S a n d r a Da yO’ Co n n o r , Re t i r e d As s o c i a t e J u s t i c e o f th e S u p r e me * C our tof the U ni t ed St at es , s i t t i ng bydes i gnat i on. NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT N o. 07- 2590

E A S T E R N A D H E S IV E S , IN C ., A ppel l ant v . S CAP A NO RTH AM ERI CA, I NC.

O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o r th e E a ste rn D istric t o f P e n n sy lv a n ia D . C . C i vi l A ct i on N o. 06- cv- 1727 (H o n o rab le J. C u rt is Joyn er) Subm i tt ed Pur s uantt o T hi r d C i r cui tL A R 34. 1( a)

N ovember20, 2008 B e f o re : S C IR IC A , C hi ef

Judge , R E N D E L L , C i r cui tJudge , a n d O ’C O N N O R , R et i r ed Ass oci at e Jus t i ce * ( Fi l ed: D ece m ber31, 2008) OPI NI ON O F THE COURTT he D i s tr i ctC our thad di ver s i tyj ur i s di ct i on under28 U . S. C . § 1332, and w e have 1 ju ri s d ic tio n u n d e r 2 8 U .S .C . § 1 2 9 1 . 2 S C IR IC A , C hi ef

Judge . E as t ern A dhes i ves appea l s an or derof the D i s tr i ctC our tdeny i ng i t s m ot i on for l eave t o fi l e a Sec ond A m ended Com pl ai ntand gr ant i ng Scapa N or th A m er i ca’ s m ot i on t o s tr i ke the Second A m ended Com pl ai nt . E as t ern A dhes i ves ’ s pl eadi ngs al l eged Scapa b rea ch ed a 2 0 0 1 o ral co n tr ac t. U n d er the ag ree m en t, S ca p a w o u ld su p p lyE astern A dhes i ves ’ s r equi r ement s of a t ape pr oduct , SP357-. 003, forr es al e t o a thi r d party , and Scapa w oul d noti t s el f s el l SP357-. 003 ors i m i l arpr oduct s t o the thi r d party . B eca us e the al l eged a gr eementw as form or e than fi ve- hundr ed dol l ar s and made or al l y , w e cons i der w hetherthe Penns y l vani a s t atut e of f r auds , 13 Pa. C ons . St at . § 2201, bar s enfor cementof E ast ern A dh esi ves’s cl ai m s. 1 I. A t th e o u tsetw e m u st ad d ress w aive r be ca u se f o u r of E astern A d h esiv es’s ar gum ent s w er e nei therr ai s ed i n the D i s tr i ctC our tnorw er e gr ounds forthe D i s tr i ct C o u rt’s ju d g m e n t. “G e n e ra lly , fa ilu re to ra ise a n iss u e in th e D istric t C o u rt re su lts in its w a iv e r o n a p p e a l.” H

uberv. Tayl or , 469 F. 3d 67, 74 ( 3d C i r . 2006) . E as t ern A dhes i ves m akes fournew ar gum ent s : ( 1) the mer chant ’ s exce pt i on t o the s t atut e of f r auds i n 13 Pa. C ons . St at . § 2201( b) appl i es ; ( 2) the § 2201( c) ( 3) exce pt i on t o the s t atut e of f r auds r egar di ng goods r ece i ved and a cce pt ed appl i es ; ( 3) Scapa w ai ved the s t atut e of f r audsE a s te rn A d h e s iv e s m a d e f o u r a n d o n ly f

o u r a rg u m e n ts b e f

o re th e D is tr ic t C o u rt . 2 F irst, E a ste rn A d h e siv e s a rg u e d its c o u rse o f d e a lin g w ith S c a p a sh o u ld b e in terp re ted to es t abl i s h a contr act . ( B r i ef of Pl ai nt i ff O ppos i ng M ot i on t o D i s m i s s A m ended C om pl ai nt , Supp. A pp. at3–5. ) Second, E as t ern A dhes i ves ar gued a c ontr actw as m ade b yw a yo f

a n o ra l p ro m is e a t a 2 0 0 1 m e e tin g a n d s u b s e q u e n t a c c e p ta n c e o f th a t p ro m is e . (I d. ) T h ir d , E a s te rn A d h e s iv e s a rg u e d it h a d m a d e o u t a c la im f o r p ro m is s o ry e s to p p e l. (I d. at 5– 6 ) F o u rth an d fin all y , E astern A d h esiv es m ad e p roc ed u ral argu m en ts i n su p p o rt of a mot i on forl eave t o fi l e the Second A m ended Com pl ai nt : des pi t e fi l i ng the Second A m e n d e d C o m p lain t late , E a ste rn A d h e siv e s a rg u e d th e D istric t C o u rt h a d d isc re tio n to acc eptthe Second A m ended Com pl ai nt . ( B r i ef of Pl ai nt i ff O ppos i ng M ot i on t o St r i ke S e c o n d A m e n d e d C o m p la in t, A p p . a t 8 6

– 8 7 .) T o the e x tent E astern A d h esiv es h as ra ised p rom issoryesto p p el claim s o n ap p ea l, it ’s 3 pleadi ng s do n ot cl ai m rel i ance d am ages. 3 d e f e n s e b e c a u s e o ra l a g re e m e n ts a re th e s ta n d a rd p ra c tic e in th e tr a d e , s ee At l . P aperB ox C o. v. W hi tm an’s C hocolat es , 844 F. Supp. 1038, 1043–45 ( E . D . Pa. 1994) ; and ( 4) under A LA , I nc. v. C C A I R , I nc. , 2 9 F .3 d 8 5 5 (3 d C ir. 1 9 9 4 ), a p lain tiff c a n su rv iv e a R u le 12 (b) (6) m oti on i f t he d efen dan tm i gh tadm i tthe ex i st ence o f t he co ntr acti n it s pl eadings, di s covery , ori n court . B eca us e East ern A dhes i ves di d notr ai s e thes e i s s ues i n the D istri ct C o u rt an d b ec au se th eyw ere n o t part of the D istri ct C o u rt ’s ho lding , theyare 2 w ai ved and w e add res s onlyE ast ern A dh esi ves’s tw o rem ai ning cl ai m s. 3 II. E as t ern A dhes i ves cont ends the l ett er s i texcha nged w i th Scapa i n 2002 and w hi ch i tatt ache d t o the C om pl ai ntar e s uffi ci entt o s at i s fythe s t atut e of f r auds . A contr actfor th e s a l e o f

g o o d s f o rf i v e h u n d r e d d o l l a r s o rmo r e i s n o te n f o r c e a b l e “ u n l e s s th e r e i s s o me w r i t i ng s uffi ci entt o i ndi cat e thata contr actfors al e has been made betw een the part i es a n d s ig n e d b yth e p a rt ya g a in s t w h o m e n f o rc e m e n t is s o u g h t.” 1 3 P a . C o n s . S ta t. §E as t ern A dhes i ves ’ s J une 2002 l ett eri dent i fi es a di ffe r entagr eementthan the one 4 i dent i fi ed i n the pl eadi ngs . T he pl eadi ngs s ugges tR akes h K um arand J oe C r ai g ent er ed i nt o an or al contr acti n 2001. T he ac countpr ot ect i on agr eementi dent i fi ed i n the J une 2 0 0 2 lette r p u rp o rte d lyin v o lv e d C h ris T h o m a s a n d M a rv in H ick m a n a n d w a s p u rp o rte d ly en tered into “ sev era l y ea rs ag o , ” n o tablyin a y ea r prior to 2 0 0 1 . (A p p . at 16 . ) E as t ern A dhes i ves admi t t ed bef or e the D i s tr i ctC our t , how ever , thatpr i ort o the 2001 or al pr om i s e al l eged i n t he pl eadi ngs , no agr eementexi s t ed. ( Supp. A pp. at5) ( not i ng thatat the t i m e of the 2001 agr eement , “[e ] i therpartycoul d have c eas ed doi ng bus i nes s w i th the otheratanyt i m e”) . A ccor di ngl y , byE as t ern A dhes i ves ’ s ow n admi s s i on, the J une 2002 l ett ercl ai m ed a c ontr actual r el at i ons hi p thatdi d notexi s t . T he s t atut e of f r auds guar ds a g a in st e n f

o rc e m e n t. 4 2201( a) . E as t ern A dhes i ves ar gues a l ett eri ts entScapa i n J une 2002, w hi ch r efe r s t o an “ac countpr ot ect i on agr eement , ” es t abl i s hed the cont extforScapa’ s s i gned, w r i t t en 4 re sp o n se s in Ju lya n d O c to b e r 2 0 0 2 . B e c a u se th e se su b se q u e n t co m m u n ica tio n s f a il t o d is c la im s u c h a n a g re e m e n t, th e a rg u m e n t g o e s , S c a p a ’s le tte rs a d m it th e a g re e m e n t. T o the ext entE as t ern A dhes i ves s ugges t s the mer chant ’ s exce pt i on t o the s t atut e of f ra u d s a p p lie s b e c a u s e S c a p a f a ile d to o b

je c t, th e a rg u m e n t is w a iv e d . See sup ra . T o t he ext entE as t ern A dhes i ves s ugges t s Scapa’ s l ett er s i ncorpor at ed the as s ert i on of an agr eementbyr efe r ence i n i t s ow n s i gned w r i t i ngs , the l ett er s att ache d t o the pl eadi ngs pr ovi de no s uppor t . Scapa’ s l ett er s do notr efe rt o an ac countpr ot ect i on agr eement . T hey re c o g n ize E a ste rn A d h e siv e s lo st o n e o f its c lien ts w h e n S c a p a b e g a n se lli n g d ire c tlyto that cli en t. A d d it ion all y , theyac k n o w ledg e S ca p a so u g h t t o av o id losing E astern A d h esiv es f

o r oth er b u sine ss. T h ese d o cu m en ts do n o t r ef er to E astern A d h esiv es’s a ss e rtio n s o f

a n a c c o u n t p ro tec tio n a g re e m e n t, no r d o th e yd e m o n stra te a re q u ire m e n ts5

contr actbetw een Eas t ern A dhes i ves and Scapa . A ccor di ngl y , the l ett er s do nots at i s fyt he st atute of frauds. III . S e c o n d , E a ste rn A d h e siv e s c o n ten d s S c a p a ’s C o n n e c ticu t sta te- c o u rt a c tio n a d m its the exc l us i ve r equi r ement s contr act . A contr acti s enfor cea bl e i f “the partyagai ns tw hom e n f o rc e m e n t is so u g h t ad m its in h is p lea d in g , tes tim o n yo r o th e rw ise in c o u rt th a t a contr actfors al e w as m ade. ” I d. § 2 2 0 1 (c )(2 ). T h e c o n tra c t, ho w e v e r, “is n o t en f o rc e a b le underthi s pr ovi s i on bey ond the quant i tyof goods admi t t ed. ” I d. E as t ern A dhes i ves does n o t id e n tifya q u a n tityo f g o o d s in th e C o n n e c ticu t C o m p lain t, m u c h les s a n a g re e m e n t to fi l l i t s r equi r ement s . A ccor di ngl y , beca us e the contr actcannotbe enf or ced be y ond the q u a n tity a d m itte d , i d. , an d E astern A d h esiv es d o es n o t i d en ti fythe q u an ti ty , S ca p a’s C on necti cut act i on do es not s at i sfythe st atute of frauds. I V. F o r th e f o re g o in g re a so n s, w e w ill a f f irm th e ju d g m e n t o f

th e D istric t C o u rt.