ST. LOUIS — A federal judge will allow a lawsuit involving Jacobsen Warehouse Company and Schnuck Market Inc. to proceed.
In the July 16 ruling, Judge John Ross of the U.S. District Court for the Eastern District of Missouri denied Schnuck Market's request to reconsider Jacobsen Warehouse Company's breach of contract claim. (Jacobsen is also known as XPO Logistics Supply Chain.)
Ross wrote Schnuck Market did not provide any new arguments.
Both companies allege breach of contract.
“Schnuck is largely reiterating the same arguments it made in opposition to XPO’s previous motion, which the court considered and rejected,” Ross wrote.
The court also ruled Schnuck's fraud and conversion claims can only recover limited damages.
Schnuck seeks damages for XPO’s alleged mishandling and damaging of date- and temperature-sensitive items, citing “wrongful use of Schnuck’s property while in possession.”
The court stated that the “clear” and “plain language” the original operating agreement applied, which stated that “unless otherwise prohibited by law, neither party shall be liable for incidental or consequential damages or indirect, special or punitive damages.”
The lawsuit stems from XPO's agreement with Schnuck’s to provide warehouse management services for Schnuck’s new distribution facility. Eventually, both companies claimed the other “breached their contractual and other agreements” in their business dealings and sued in 2017.
XPO filed suit against Schnuck’s for breach of contract and several other counts; two counts were subsequently dismissed. Schnuck’s counterclaimed allegations of breach of contract, breach of covenant of good faith and fair dealing and negligence were limited, and the fraud count was dismissed “for failure to sufficiently plead the elements of a claim for fraudulent misrepresentation.”
Schnuck Markets, Inc. is a St. Louis-based company founded in 1939. It operates about 100 stores in Missouri, Illinois, Indiana, Iowa and Wisconsin.