Cena Motion To Dismiss
Cena Motion To Dismiss
Cena Motion To Dismiss
Defendant.
complaint under Fed. R. Civ. P. 12(b)(6) because the final, governing contract
containing all terms for the sale of the 2017 Ford GT did not restrict Cena from
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reselling the vehicle. Ford and Cena agreed that any resale restriction would be in
the selling dealer’s sales agreement. Ford failed to cause its selling dealer to
Cena further moves to dismiss for lack of federal subject matter jurisdiction
under Fed. R. Civ. P. 12(b)(1), and to strike Ford’s request for attorney’s fees and
all damages except $1 of its actual out-of-pocket costs under Fed. R. Civ. P. 12(f).
The prior agreement on which Ford sues prohibits Ford from recovering attorney’s
fees and limits the recoverable damages to $1 of its actual out-of-pocket costs, so
counsel before filing this motion. Ford did not agree to the requested relief.
dismiss the complaint for failure to state a cause of action and for lack of federal
subject matter jurisdiction, to strike Ford’s requests for attorney’s fees and
damages exceeding $1 of its actual out-of-pocket costs, and to grant any other and
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Respectfully submitted,
and
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Defendant.
BRIEF IN SUPPORT OF
MOTION TO DISMISS COMPLAINT AND TO STRIKE
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TABLE OF CONTENTS
INTRODUCTION .........................................................................................................................1
BACKGROUND............................................................................................................................1
ARGUMENT .................................................................................................................................5
A. Ford’s claims fail under the final, fully-integrated Sales Agreement which Ford
agreed would impose any restrictions on resale of the subject vehicle......................... 5
B. The prior agreement Ford relies upon shows this action must be dismissed....... 9
C. Ford’s claims for attorney’s fees and damages beyond out-of-pocket costs should
be stricken. ....................................................................................................................... 11
CONCLUSION ............................................................................................................................12
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INDEX OF AUTHORITIES
Cases
ADR N. Am., L.L.C. v. Agway, Inc., 303 F.3d 653 (6th Cir. 2002) ................ v, 6
Belle Isle Grill Corp. v. City of Detroit, 256 Mich. App. 463, 666 N.W.2d 271
(2003) .......................................................................................................... v, 9
Cleveland Hous. Renewal Project v. Deutsche Bank Tr. Co., 621 F.3d 554, 559
(6th Cir. 2010)................................................................................................. 9
Helwig v. Kelsey-Hayes Co., 907 F. Supp. 253, 256 (E.D. Mich.1995) ...... v, 11
Hill v. Blue Shield of Mich., 299 F.Supp.2d 742, 751 n. 7 (E.D.Mich.2003) .. 11
Huron Tool & Eng’g Co. v. Precision Consulting Servs., Inc., 209 Mich. App.
365, 532 N.W.2d 541, 546 (1995)................................................................... 8
In re Smith Trust, 480 Mich. 19, 24, 745 N.W.2d 754 (2008) ........................... 5
Kreipke v. Wayne State Univ., 807 F.3d 768, 774 (6th Cir. 2015) (quoting
Bassett v. NCAA, 528 F.3d 426, 430 (6th Cir. 2008))..................................... 6
Martin v. East Lansing Sch. Dist., 193 Mich. App. 166, 483 N.W.2d 656 (1992)
..................................................................................................................... v, 9
Odell v. Humble Oil & Ref. Co., 201 F.2d 123, 128 (10th Cir. 1953) ......... v, 10
Rodzik v. N.Y. Cent. R.R. Co., 169 F. Supp. 803, 806 (E.D. Mich. 1959) ... v, 12
Saint Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283 (1938)........ v, 10
Sanchez-Arroyo v. E. Airlines, Inc., 835 F.2d 407, 408 (1st Cir. 1987)....... v, 10
Sellers v. O’Connell, 701 F.2d 575, 578 (6th Cir. 1983)........................ v, 10, 11
Tyson v. Sterling Rental, Inc., 836 F.3d 571 (6th Cir. 2016) ......................... v, 8
UAW-GM Human Res. Ctr. v. KSL Recreation Corp., 228 Mich. App. 486, 579
N.W.2d 411 (1998)...................................................................................... v, 7
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Uhl v. Komatsu Forklift Co., Ltd., 512 F.3d 294 (6th Cir. 2008)................... v, 8
Valhal Corp. v. Sullivan Assocs., Inc., 44 F.3d 195, 209 (3d Cir. 1995) ..... v, 10
Van Tassel v. McDonald Corp., 159 Mich. App. 745, 750-53, 407 N.W.2d 6
(1987) .......................................................................................................... 8, 9
Wolverine World Wide, Inc. v. Wolverine Can., Inc., 653 F. Supp. 2d 747, 773
(W.D. Mich. 2009) .......................................................................................... 8
Rules
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selling dealer’s sales agreement bars Ford’s claims where Ford agreed that any
restriction on resale would be imposed by Ford’s selling dealer and included in the
agreed that no party could recover attorney’s fees or damages exceeding $1.
stricken where Ford agreed that no party could recover attorney’s fees or damages
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2. ADR N. Am., L.L.C. v. Agway, Inc., 303 F.3d 653 (6th Cir. 2002)
3. Belle Isle Grill Corp. v. City of Detroit, 256 Mich. App. 463, 666 N.W.2d
271 (2003)
4. Helwig v. Kelsey-Hayes Co., 907 F. Supp. 253, 256 (E.D. Mich.1995)
5. Martin v. East Lansing Sch. Dist., 193 Mich. App. 166, 483 N.W.2d 656
(1992)
6. Odell v. Humble Oil & Ref. Co., 201 F.2d 123, 128 (10th Cir. 1953).
7. Rodzik v. N.Y. Cent. R.R. Co., 169 F. Supp. 803, 806 (E.D. Mich. 1959)
8. Saint Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283 (1938)
9. Sanchez-Arroyo v. E. Airlines, Inc., 835 F.2d 407, 408 (1st Cir. 1987)
10.Sellers v. O’Connell, 701 F.2d 575, 578 (6th Cir. 1983)
11.Tyson v. Sterling Rental, Inc., 836 F.3d 571 (6th Cir. 2016)
12.UAW-GM Human Res. Ctr. v. KSL Recreation Corp., 228 Mich. App. 486,
579 N.W.2d 411 (1998)
13.Uhl v. Komatsu Forklift Co., Ltd., 512 F.3d 294 (6th Cir. 2008)
14.Valhal Corp. v. Sullivan Assocs., Inc., 44 F.3d 195, 209 (3d Cir. 1995)
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INTRODUCTION
Ford’s action rests entirely on an alleged resale restriction that Ford failed to
have its dealer incorporate in the dealer’s sales agreement. Ford agreed that the
dealer’s sales agreement would be the final governing contract setting “[t]he
purchase price and all other terms of sale” for the 2017 Ford GT. Compl. Ex.1, ¶ 2
(emphasis supplied). Ford’s selling dealer included no resale restriction in the sales
agreement, and Ford, therefore, cannot state any cause of action against Cena
Ford has tried to overcome its failure by not attaching the governing sales
through” agreement. But that prior agreement caps Ford’s damages at the lesser of
conclusively showing that Ford cannot recover damages which exceed this Court’s
BACKGROUND
This action concerns the purchase and resale of a 2017 Ford GT which Ford
claims violated an alleged restriction against reselling the vehicle within the first
24 months. Ford alleges it required Cena and other potential owners to apply to
purchase the 2017 Ford GT. Compl. ¶ 11. Ford presented applicants with the Ford
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required them “to check a box reflecting their agreement before they could proceed
further,” which Cena did on or before April 14, 2016. Compl. ¶¶ 12, 15; Compl.
Ex. 1. Ford alleges it selected Cena to purchase the vehicle and required him to
Compl. ¶ 23.
Compl. Ex. 3.
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Ford paraphrases and quotes selected provisions from the foregoing Terms
these documents together “compris[e] the contract between Ford and Mr. Cena.”
Compl. ¶ 8. But Ford failed to paraphrase or quote the provisions in its Terms and
Conditions and its Affidavit of Eligibility in which Ford and Cena expressly agreed
that any restriction on resale would be imposed by Ford’s selling dealer in the
selling dealer’s sales agreement. Ford thus stated in its Terms and Conditions and
its Affidavit of Eligibility that “[s]ales of the GT will be made by Ford dealers,”
not Ford, and that the selling dealer, not Ford, would establish all terms of the sale:
supplied). In the next sentence, Ford explained that all terms of sale included any
restrictions on resale:
Ford stated in its Affidavit of Eligibility that its selling dealer, not Ford,
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Compl. Ex. 2 ¶ 6.
Ford’s selling dealer, Elder Ford of Tampa, LLC, sold the subject vehicle to
Cena’s company, HNS I, LLC, in a sales agreement called the Buyer’s Order,
Agreement & Vehicle Information Form, attached hereto as Exhibit 1. Ford had
stated in its prior agreements and communications with Cena that Elder Ford
The sales agreement provides, “You agree to purchase the vehicle from us
according to the terms of this Order and Agreement.” Mot. Ex. 1, p. 1. The sales
agreement continues with the terms of sale which do not restrict resale. The sales
agreement concludes with a merger clause just above the final signature lines:
agreement is dated October 12, 2017—more than nine months after the email and
Order Confirmation that form the basis of Ford’s claims. Compare Compl. Ex. 3
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In the “dispute” sections of the Terms and Conditions and the Affidavit of
Eligibility, Ford limited its recovery to $1 of its actual out-of-pocket costs and
damages and prohibition against recovery of attorney’s fees, Ford seeks damages
ARGUMENT
ordinary meaning and will be enforced as written. In re Smith Trust, 480 Mich. 19,
24, 745 N.W.2d 754 (2008). In the Terms and Conditions and the Affidavit of
Eligibility, Ford and Cena agreed that all terms for the sale of the 2017 GT—
agreement between the buyer and selling dealer. Compl. Ex. 1 ¶ 2; Compl. Ex. 2 ¶
6(c)-(e). Thus, if Ford wanted to restrict resale of the vehicle, Ford had to cause its
selling dealer to include such a restriction in the selling dealer’s sales agreement.
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The Court may consider the selling dealer’s sales agreement because the
Ford’s claims. “In reviewing a motion to dismiss, the Court ‘may consider …
the [c]omplaint and are central to the claims contained therein.’” Kreipke v. Wayne
State Univ., 807 F.3d 768, 774 (6th Cir. 2015) (quoting Bassett v. NCAA, 528 F.3d
426, 430 (6th Cir. 2008)). Ford’s complaint attaches, paraphrases, and quotes the
Terms and Conditions and the Affidavit of Eligibility, which in turn refer to and
establish the selling dealer’s agreement as the final agreement which governs all
terms of sale including resale restrictions. See Fed. R. Civ. P. 10(c); Compl. Ex. 1 ¶
Of course, Ford failed to cause its selling dealer to include any resale
transferring the 2017 Ford GT within 24 months of delivery. Ford cannot renege
on its prior agreements, and cannot alter the fully-integrated, final, and controlling
communications should control.1 See, e.g., ADR N. Am., L.L.C. v. Agway, Inc., 303
F.3d 653, 658 (6th Cir. 2002) (applying Michigan law and holding, “[a] written
1
It would appear that Ford would not want to take a contrary position and risk
opening a floodgate of claims by vehicle buyers alleging an agreement with Ford
Motor Company on sale terms that did not appear in their final agreements with the
selling dealer.
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integration clause is conclusive evidence that the parties intended the document to
be the final and complete expression of their agreement” and to “supersede any
prior contract on the same subject matter.”); UAW-GM Human Res. Ctr. v. KSL
Recreation Corp., 228 Mich. App. 486, 502, 579 N.W.2d 411 (1998) (“[A]
contract with a merger clause nullifies all antecedent claims. [citation omitted] In
our view, this includes any collateral agreements that were allegedly an
Count I for breach of contract necessarily fails without the alleged resale
Count II for fraud, Count III for silent fraud, and Count IV for innocent
228 Mich. App. at 504. Ford agreed that the dealer would determine all sale terms
including any resale restrictions. As a matter of law, Ford could not ‘reasonably
ultimately did not require its dealer to include in the final, fully-integrated,
governing sales agreement. See UAW-GM Human Res. Ctr., 228 Mich. App. at 504
(“Here, the merger clause made it unreasonable for plaintiff’s agent to rely on any
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Inc. v. Wolverine Can., Inc., 653 F. Supp. 2d 747, 773 (W.D. Mich. 2009)
contract claims. The existence of a contract bars tort claims unless “the legal duty
defendant’s contractual obligations.” Tyson v. Sterling Rental, Inc., 836 F.3d 571,
582 (6th Cir. 2016) (quotation omitted). While fraud in the inducement could be
distinct from a contract claim, “fraud in the inducement is not available for a
breach of a contract’s terms, lest fraud in the inducement claims swallow all
breach-of-contract claims.” Uhl v. Komatsu Forklift Co., Ltd., 512 F.3d 294, 304
(6th Cir. 2008). Thus, fraud in the inducement will only arise if the
subsequently breached.” Id. (quoting Huron Tool & Eng’g Co. v. Precision
Consulting Servs., Inc., 209 Mich. App. 365, 532 N.W.2d 541, 546 (1995)).
which Ford ultimately did not insist. Promises of future performance are not
F.3d at 304-05; Van Tassel v. McDonald Corp., 159 Mich. App. 745, 752, 407
he would primarily operate the vehicle in Tampa, Florida, that he was “best suited
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to enjoy the Ford GT,” that he would “care properly for the vehicle,” that he was
“eligible” for the vehicle, and that he “wanted to be a part” of the vehicle
promises. Compl. ¶¶ 45, 60; see, e.g., Van Tassel, 159 Mich. App. at 750-53.
express contract, the dealer’s sales agreement, governs the terms of sale, including
any alleged resale restriction. See, e.g., Belle Isle Grill Corp. v. City of Detroit, 256
Mich. App. 463, 478, 666 N.W.2d 271 (2003); Martin v. East Lansing Sch. Dist.,
cause of action.
B. The prior agreement Ford relies upon shows this action must be
dismissed.
Even without the final, governing sales agreement, the exhibits to Ford’s
complaint show this action must be dismissed. Ford invokes this Court’s diversity
jurisdiction. But Ford’s Terms and Conditions and Affidavit of Eligibility prohibit
Ford from recovering damages even approaching $75,000. Compl. Exs. 1 and 2.
Deutsche Bank Tr. Co., 621 F.3d 554, 559 (6th Cir. 2010). The plaintiff’s
allegation of damages is not controlling where “it appears to a legal certainty that
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the claim is for less than the jurisdictional amount” or “the amount claimed is
merely colorable.” Sellers v. O’Connell, 701 F.2d 575, 578 (6th Cir. 1983) (citing
Saint Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288–89 (1938)). If a
contract precludes the recovery of damages above the jurisdictional minimum, the
action must be dismissed for lack of jurisdiction. See, e.g., Valhal Corp. v. Sullivan
Assocs., Inc., 44 F.3d 195, 209 (3d Cir. 1995); Sanchez-Arroyo v. E. Airlines, Inc.,
835 F.2d 407, 408 (1st Cir. 1987); Odell v. Humble Oil & Ref. Co., 201 F.2d 123,
Two terms prevent Ford from crossing the jurisdictional threshold. First,
Ford’s Terms and Conditions and its Affidavit of Eligibility expressly limit
damages for “any and all claims” to the “actual out-of-pocket costs incurred.”
Compl. Ex. 1 ¶ 11(b), Ex. 2 ¶ 9(b). Ford does not allege any out-of-pocket costs
activity, and customer goodwill.” Compl. ¶ 6, 32, 33, 42, 64, 67. Ford cannot rely
on its claim for attorney’s fees, as that too is prohibited. Compl. Ex. 1 ¶ 11(b), Ex.
2 ¶ 9(b).
If that were not enough, Ford’s Terms and Conditions and its Affidavit of
Eligibility go on to cap Ford’s damages for “any and all claims” at $1. Even if Ford
could allege that it somehow incurred large out-of-pocket costs, such costs could
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not be recovered on account of the $1 ceiling. Ford cannot complain about the
customers, and required them to accept “before they could proceed further” with
their applications. Compl. ¶ 12. Ford chose to include the term in its own take-it-
Ford’s own contract shows “to a legal certainty” that it cannot recover
damages above $75,000. Sellers, 701 F.2d at 578. This action should be dismissed
In the event that any claims survive dismissal, Fed. R. Civ. P. 12(f)
authorizes the Court to “order stricken from any pleading any insufficient defense
added). “Immaterial matters include requests for relief which are not available
under the applicable law.” Helwig v. Kelsey-Hayes Co., 907 F. Supp. 253, 256
(E.D. Mich. 1995) (striking requests for compensatory damages, punitive damages,
and disgorgement of profits which could not be recovered under applicable law),
superseded on other grounds as stated in Hill v. Blue Shield of Mich., 299 F. Supp.
2d 742, 751 n. 7 (E.D. Mich. 2003); GE Healthcare Fin. Servs. v. Cardiology &
Vascular Assocs., No. 05-71304, 2006 WL 950268, at *4 (E.D. Mich. Apr. 12,
2006) (quoting Helwig and striking paragraphs that were immaterial to claims);
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Rodzik v. N.Y. Cent. R.R. Co., 169 F. Supp. 803, 806 (E.D. Mich. 1959) (striking
expressly prohibit the recovery of attorney’s fees and any damages other than out-
of-pocket costs. Ford’s allegations of such damages and attorney’s fees should be
42, 64, 67, and the related portions of the Prayer for Relief paragraphs B, C, and D.
CONCLUSION
For the reasons stated above, Defendant John Cena respectfully requests the
Court to dismiss the complaint for failure to state a cause of action and for lack of
federal subject matter jurisdiction, to strike Ford’s requests for attorney’s fees and
damages exceeding $1 of its actual out-of-pocket costs, and to grant any other and
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Respectfully submitted,
and
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CERTIFICATE OF SERVICE
electronically filed the foregoing document with the Clerk of the Court using the
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