Opinion ID: 196987
Heading Depth: 2
Heading Rank: 1

Heading: facts

Text: 9 Reviewing the factual record in the light most favorable to the nonmoving party, as we must at summary judgment, see Mesnick v. General Elec. Co., 950 F.2d 816, 822 (1st Cir.1991), cert. denied, 504 U.S. 985, 112 S.Ct. 2965, 119 L.Ed.2d 586 (1992), we treat the following facts as controlling, noting, however, that Becton Dickinson disputes many aspects of this account. 10 A major supplier of medical products in Puerto Rico, Borschow contracted with Parke Davis & Company (Parke Davis) on May 1, 1985 to distribute a line of medical and surgical products manufactured by its subsidiary, Deseret Medical, Inc. (the Deseret Line). In mid-1986, Becton Dickinson acquired Deseret and assumed Parke Davis' obligations under the distribution agreement as an assignee. This dispute turns in large part on the content of that agreement. 11 The distribution agreement executed by Borschow and Parke Davis [Distribution Agreement], includes two provisions of interest here. First, it provides that Company [i.e., Parke Davis] hereby appoints Distributor [i.e., Borschow] and the Distributor hereby accepts appointment, as the Company's nonexclusive independent distributor of the Products for Regular Business in the Territory [i.e., Puerto Rico] during the term of this Agreement. Distribution Agreement, § 2.1.2 (emphasis added). Second, the contract included the following integration clause: 12 Integration: The terms and provisions contained in this Agreement, including all Schedules attached hereto and Company's Standard Terms and Conditions of Sale in effect, from time to time, constitute the entire agreement and is the final expression of intent between the Parties relating to the subject matter hereof and supersede, all previous communications, representations, agreements, and understandings, either oral or written, between the Parties with respect to the subject matter thereof. No agreement or understanding varying or extending this Agreement will be binding upon either Party hereto unless in writing, wherein this Agreement is specifically referred to, and signed by duly authorized officers or representatives of the respective Parties. 13 Id. § 9.10. Borschow's president, Jonathan Borschow, initially refused to sign any contract that included a non-exclusivity provision. However, in negotiations prior to execution of the Distribution Agreement, Robert Vallance, Deseret's Regional Director for Canada/Latin America, assured Mr. Borschow that his distributorship would be exclusive. Vallance promised him that he would receive a letter from Parke Davis promising exclusivity. When that letter was not forthcoming, Mr. Borschow telephoned Vallance and inquired about the delay. Vallance told Mr. Borschow that the people in Morris Plains, the corporate headquarters of Warner Lambert, Parke Davis' parent company, were considering the matter. 14 After that conversation, Mr. Borschow received a draft of the Distribution Agreement, which included the non-exclusivity term. He again objected to Vallance but was told that the contract cannot, it will not be changed. The people in Morris Plains will not countenance it. However, Vallance reassured Mr. Borschow that he would send a document that would outline the true basis for their business relationship, including a promise that Borschow's distributorship would be exclusive. 15 Within a matter of days, Mr. Borschow received a two-page undated and unsigned outline. The outline specifies that one of the supplier's obligations is to sell exclusively to the DISTRIBUTOR and refrain from selling to other DISTRIBUTORS or clients in the territory while the AGREEMENT is in effect. The outline neither explicitly mentions Mr. Borschow or Parke Davis nor refers to the May 1 Distribution Agreement. Borschow testified that he executed the Distribution Agreement approximately two weeks after he received the outline. 2 16 From the execution of the agreement in 1985 to 1986, Borschow remained Parke Davis' exclusive distributor of the Deseret line. After Becton Dickinson's acquisition of Deseret in mid-1986, no changes were made in the relationship until November 1989, when Becton Dickinson granted distributorships to UMECO, Inc. and Cesar Castillo, Inc. 17 Moreover, according to Borschow and his salespeople, at approximately the same time that the additional distributors were established in November 1989, Becton Dickinson demanded that Borschow cease distributing the Monoject Syringe & Needle Line, made by a Becton Dickinson competitor, and begin carrying the Becton Dickinson syringe line. Becton Dickinson also threatened that if Borschow did not meet this demand, it would no longer be supplied with the Deseret line. However, Becton Dickinson did not carry through on this threat. Although Borschow refused to drop Monoject, Becton Dickinson continued to supply Deseret products to Borschow.