Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

RSM Richter, Inc. v. Behr America, Inc.

United States Court of Appeals, Sixth Circuit

September 5, 2013

RSM Richter, Inc., as Trustee for Aleris Aluminum Canada, L.P., Plaintiff-Appellant,
v.
Behr America, Inc., Defendant-Appellee.

Argued: June 18, 2013

Appeal from the United States District Court for the Eastern District of Michigan at Detroit. No. 2:09-cv-10734—Gerald E. Rosen, Chief District Judge.

ARGUED

Sarah C. Lindsey, WARNER NORCROSS & JUDD, LLP, Southfield, Michigan, for Appellant.

Kevin J. Stoops, SOMMERS SCHWARTZ, P.C., Southfield, Michigan, for Appellee.

ON BRIEF

Sarah C. Lindsey, WARNER NORCROSS & JUDD, LLP, Southfield, Michigan, John D. Parker, BAKER & HOSTETLER LLP, Cleveland, Ohio, for Appellant.

Kevin J. Stoops, SOMMERS SCHWARTZ, P.C., Southfield, Michigan, for Appellee.

Before: KEITH, CLAY, and KETHLEDGE, Circuit Judges.

OPINION

KETHLEDGE, Circuit Judge.

In this case the district court determined that Behr America, Inc. owes Aleris Aluminum Canada, L.P. (Aleris) $2.6 million for aluminum rolls that Behr received from Aleris but did not pay for. Behr did not pay for the aluminum because Aleris breached its requirements contract with Behr. This breach allegedly forced Behr to incur $1.5 million in cover costs (to use the UCC term). But the district court abstained from adjudicating whether Behr was entitled to a setoff in that amount, and instead awarded Aleris a partial judgment of $1.1 million. The court did so for two reasons: first, Behr had already filed a nearly identical claim for cover costs in Michigan state court; and second, Aleris had filed for bankruptcy in Canada. We conclude that neither is a valid ground for abstention here, and reverse.

I.

RSM Richter, Inc., is the trustee in Aleris's bankruptcy proceedings in Canada. Aleris supplied aluminum to Behr pursuant to a requirements contract until a labor dispute forced Aleris to close its factory in Quebec in July 2008. After learning of the factory closure, Behr took delivery of aluminum worth approximately $2.6 million from Aleris without paying for it. Behr also scrambled to obtain aluminum from other suppliers after the closure, which Behr says increased its costs by $1.5 million beyond those prescribed by its contract with Aleris.

Behr sought to recover those costs in a lawsuit it filed in Michigan state court in July 2008. Behr named Aleris's parent company, Aleris International, Inc., as a defendant, but mistakenly did not name Aleris itself. That action was stayed in February 2009 when Aleris International filed for bankruptcy in the United States. Aleris filed for bankruptcy in Canada a month later. In June 2009, Behr amended its state-court complaint to add Aleris as a defendant. In response, Aleris's trustee in the Canadian bankruptcy, RSM, filed a notice with the state ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.