‘Minuve Order Form (06/97)

United States District Court, Northern District of Illinois

Name of Assigned Judge John F. Grady Sitting Judge if Other
or Magistrate Judge than Assigned Judge

01 C 3251 DATE 12/29/2003

Chicago Printing Company v. Heidelberg USA, Inc.

[In the following box (a) indicate the party filing the motion, e.g., plaintiff, defendant, 3rd party plaintiff, and (b) state briefly the nature
of the motion being presented.]

MOTION:

DOCKET ENTRY:

() Q Filed motion of [ use listing in “Motion” box above.]

(2) a Brief in support of motion due

(3) im Answer brief to motion due___- Reply to answer briefdue___.

(4) QO Ruling/Hearingon___set for at

(5) Oo Status hearing[held/continued to] [set for/re-set for]on__—set for at

(6) a Pretrial conference[held/continued to] {set for/re-set for]on___—ssetfor__—ss ss at__.

(7) i Trial{set for/re-set for]on at.

(8) a (Bench/Jury trial] [Hearing] held/continued to___at

(9) Oo This case is dismissed [with/without] prejudice and without costs[by/agreement/pursuant to]
QFRCP4@m) OLocal Rule 41.1 OCOFRCP41(a)(1) OO FRCP41(a)(2).

(10) | [Other docket entry] Defendant's motion for partial summary judgment on

the issue of punitive damages is denied. Plaintiff's motions for
sanctions under Rule 11 and 28 U.S.C. § 1927 are denied. ENTER
MEMORANDUM OPINION & ORDER.

ai oa [For further detail see order (on reverse side offattached to) the original minute order.}

No notices required, advised in open court. Document
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01 3251 December 29, 2003

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

Chicago Printing Company,

Plaintiff,

No. 01 ¢ 3251 fh ~y
DEC 8 2003

Vv.

Heidelberg USA, Inc.,

Defendant.

MEMORANDUM OPINION & ORDER

The motion of the defendant for partial summary judgment on
the issue of punitive damages is denied. The court has
substantial doubt that the plaintiff will be able to make out a
case for punitive damages, but the possibility is nonetheless
sufficient to give us pause in regard to summary judgment. It
will be better to await the developments at trial.

The court's primary concern is the corporate complicity
doctrine. The basic misrepresentations made by Newlin, the
salesman, concerning the condition and history of the press,
were, as far as we can tell, not authorized by anyone in
defendant's management. Nor does there appear to be evidence
that anyone in defendant's management knew the misrepresentations
were being made at or about the time they were made. We think,
therefore, that corporate complicity will depend upon whether
Newlin's misrepresentations were ratified by the later assurances
given to plaintiff by defendant's managers. There is substantial

merit to defendant's argument that these assurances were not i


2
sufficiently related to the original misrepresentations to be
considered ratification and that, moreover, they are more in the
nature of puffery than factual representations.

We have less doubt about whether Newlin's misrepresentations
are sufficiently grievous to support an award of punitive
damages. Each side can find support in some of the decided
cases, but we think the answer is not so clear as to authorize
judgment for defendant as a matter of law.

Because there is a real possibility that we will enter
judgment for defendant on punitive damages after all of the
plaintiff's evidence on the issue has been heard, the parties are
directed to avoid mentioning the issue of punitive damages in
their opening statements to the jury.

Plaintiff's motions for sanctions under Rule 11 and 28
U.S.C. § 1927 are denied. The defendant's arguments are not
unreasonable.

DATE: December 29, 2003

ENTER; =e AAA
John F. Arady, United States District e