Stephan v. Rocky Mountain Chocolate Factory, Inc.
Stephan v. Rocky Mountain Chocolate Factory, Inc.
Opinion of the Court
MEMORANDUM OPINION AND ORDER
Rocky Mountain Chocolate Factory, Inc. (“Rocky Mountain”) has taken a
1. It is inappropriate to attempt to enlarge a record on appeal, as the motion sought to do, with a document that was not part of the record before this Court and that had never been submitted to this Court for its consideration in conjunction with Rocky Mountain’s alternative motion (a) for dismissal under Fed.R.Civ.P. (“Rule”) 12(b)(6) or (b) for summary judgment under Rule 56. Supplementation of an appellate record ordinarily cures a gap that has been created by an unintended omission, from the record transmitted to the Court of Appeals, of something that was part of the grist for the district court’s decision on appeal.
2. To the extent that the new information that was being proffered by Rocky Mountain was asserted as something that would have made a difference in the consideration or disposition of the ease if it had been submitted in the first instance, the most appropriate procedure would be to file a Rule 60(b) motion in the district court. As this Court elaborated in its February 28 oral ruling, the better view in that situation (though it is not universally held, see 11 Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure: Civil 2d [‘Wright, Miller & Kane”] § 2873 (2d ed. 1995)) is that the district court then has the power to deny the motion if it is considered to be lacking in merit, while if the district court is inclined to grant relief it should request a remand to revest jurisdiction in the district court to permit it to do so (Brown v. United States, 976 F.2d 1104, 1110-11 (7th Cir. 1992); Graefenhain v. Pabst Brewing Co., 870 F.2d 1198, 1211 (7th Cir. 1989); and see also 11 Wright, Miller & Kane § 2873, at 432-34 & nn. 6-8 and numerous eases cited there).
Now Rocky Mountain’s counsel has indeed returned to this Court with a Rule 60(b) motion seeking relief from the adverse judgment that the Opinion ordered to be entered. In brief Rocky Mountain asserts (and this Court credits for purposes of discussion) that when this Court was in the course of considering Rocky Mountain’s Rule 12(b)(6)/Rule 56 motion and requested that it be provided with some specified further documentation by the litigants to facilitate such consideration, the parties agreed that Stephans’ counsel would submit a copy of the Franchise Agreement (“FA”) between Rocky Mountain and Rocky Mountain Chocolate of Illinois, Inc.,
But the problem with Rocky Mountain’s current motion is that the presence or absence on FA Ex. E of Lawrence’s signature (or those of Patricia and their colleagues in the ownership of Rocky Mountain-Illinois, the only Franchisee identified in the FA) is totally immaterial as a legal matter — it is unquestionably nonoutcome-déterminative. Any examination of Opinion at 775, with its brief reference to what this Court then understood (based on the document presented to it) to be the lack of signatures on that Exhibit, clearly reflects that the absence-of-signature reference was totally collateral — an added fillip that had no legal significance whatever.
Quite to the contrary, the significance of FA Ex. E to this Court’s decision was not at all a function of whether or not it was actually signed by Lawrence or the other corporate principals, but rather that FA Ex. E itself (whether or not executed) further confirmed what the FA itself nailed down: that the Illinois corporation, and not Lawrence or his colleagues as individuals, was the sole Franchisee (see not only the analysis in Opinion at 774-75 but also the telling signature page on the body of the FA, Ex. 3 to the Opinion, Opinion at 782
That personal undertaking6 would of course have been unnecessary if Lawrence (for example) had already accepted personal responsibility by executing the FA. In addition, Ex. E itself reconfirms that only Rocky Mountain-Illinois, and not Lawrence and the other individuals, was the Franchisee.
This Court of course has no knowledge of the circumstances that led to the mistaken document delivery by Stephans’ counsel, nor does that matter. What does control here is that the issue raised by Rocky Mountain’s current motion is a total irrelevancy, having no legal significance whatever. There is no reason to depart from either the analysis or the decision reached in the Opinion. Rocky Mountain’s Rule 60(b) motion is denied in its entirety.
. This memorandum opinion and order had already been prepared by this Court, and was in
. Citations to the Opinion will take the form “Opinion at -reflecting the page number but omitting the volume number in F.Supp.
. Rocky Mountain’s current motion mischarac-terizes the FA as having been entered into between Lawrence and Rocky Mountain. It was not, as the document itself expressly reflects, and indeed that was part (but by no means all) of the reasons that Rocky Mountain lost the case before this Court.
. As Opinion at 775 states, that document— though entitled "Nondisclosure and Noncompetition Agreement" — actually provided for personal undertakings and guaranties to be entered into by the listed “beneficial owners, directors and principal officers" of the corporate Franchisee— Lawrence, Patricia and two others.
. In that latter respect, numbered paragraph 3 in Opinion at 775 points to the special significance of the signatures to the FA itself in the form that Rocky Mountain had sought to obtain them and as Lawrence and the others had altered that form — specifically eliminating any potential individual inclusion of Lawrence or his colleagues within the "Franchisee" concept.
. [Footnote by this Court] As Opinion at 775 reflects, that language refers to FA Ex. E.
Reference
- Full Case Name
- Lawrence F. STEPHAN v. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
- Status
- Published