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Zemco Manufacturing, Inc. v. Navistar Int'l Transp. Corp.

Manufacturer-supplier contract was ambiguous as to whether supplier's promise not to sue on disputed claim was sole consideration for agreement, thus precluding summary judgment.

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The full case caption appears at the end of this opinion.

RIPPLE, Circuit Judge. ZemcoManufacturing, Inc., (“Zemco”) filed thisaction against Navistar InternationalTransportation Corp. (“Navistar”)alleging that Navistar had breached twodistinct, but interrelated, agreementswith Zemco (“Count I” and “Count II”) andhad conspired to interfere with acontract (“Count III”). Earlier in thislitigation, the district court grantedNavistar’s motion for summary judgment onCount III, and we affirmed.[FOOTNOTE 1] Weremanded the remainder of the case to thedistrict court. While on remand, thedistrict court recommended and theparties consented to separate trials forthe remaining contract claims. Theparties opted to litigate Count I first,and a jury returned a verdict forNavistar. Before Count II proceeded totrial, the district court grantedNavistar’s motion for summary judgment onthis claim finding that the considerationsupporting the contract had failed. Forthe reasons set forth in the followingopinion, we reverse the judgment of thedistrict court as to Count II and remandthis case for further proceedings.

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