Wistron NeWeb Corporation v. Genesis Networks Telecom Services, LLC

Background

Wistron NeWeb Corporation moved under Federal Rule of Civil Procedure 56 for summary judgment on its claim for contractual interest against Genesis Networks Telecom Services, LLC and GNET ATC, LLC. Wistron sought $3,144,951.12 in contractual prejudgment interest through August 29, 2023, along with additional interest accruing at $4,543.03 per day until final judgment.

The court had previously granted Wistron summary judgment on liability and awarded damages against the defendants. In a later order, the court awarded Wistron $599,505.90 in attorneys’ fees and costs but denied the request for contractual interest because the parties had not established when title to the products transferred. The court had determined that the Distributor Agreement set an annual interest rate of 18%, beginning 90 days after title transfer.

Contractual Interest

Wistron submitted additional facts concerning the parties’ Vendor Management Inventory process. Under that process, title to products transferred when Genesis removed them from consignment stock in its warehouse. When Genesis removed products, an electronic data system sent Wistron a transfer notification, and Wistron generated an invoice. The parties’ facts established that the warehouse removal, title transfer, notification, and invoice occurred on the same day.

The opinion identifies 22 unpaid invoices. Based on their dates and the contractual 90-day period, the court determined that Wistron was entitled to contractual prejudgment interest at 18% beginning 90 days after each invoice date. The amount through August 29, 2023 was $3,144,951.12, with additional interest accruing at $4,543.03 per day.

Genesis’s Objection

Genesis made a limited objection because it had appealed the court’s earlier summary-judgment ruling. Genesis argued that, if it prevailed on appeal, there would be no basis for an interest award against it. The court noted that no party had requested a stay of the earlier order pending appeal. It ruled that, without a stay, the district court retained authority to decide attorneys’ fees and other collateral matters despite the pending appeal.

Disposition

The court granted Wistron’s motion for summary judgment. It directed the Clerk of Court to prepare a judgment awarding $12,956,713.97, consisting of $9,212,256.95 in damages, $599,505.90 in attorneys’ fees and costs, and $3,144,951.12 in contractual interest. The judgment also includes additional prejudgment contractual interest of $4,543.03 from August 29, 2023 until the judgment is entered. The court directed the Clerk to close the motion.