Hennepin Paper Co. v. Fort Wayne Corrugated Paper Co.
United States Court of Appeals for the Seventh Circuit
153 F.2d 822 (1946)
Hennepin Paper Co. (plaintiff) had a written contract to sell corrugating material to Fort Wayne Corrugated Paper Co. (defendant), and the parties allegedly agreed, first orally and then again orally, on minimum monthly tonnage figures that clarified the contract's "up to 600 tons, more or less" language. When Fort Wayne stopped taking and paying for the agreed minimum, Hennepin sued for breach in Indiana federal court; that court struck Hennepin's allegations about the contemporaneous negotiations, found the contract unambiguous, and entered judgment for Fort Wayne. Hennepin then filed a second suit in Illinois federal court to reform the same written contract to reflect the parties' true intent. Fort Wayne moved for summary judgment, arguing the second suit was precluded by the first judgment; the district court agreed, and Hennepin appealed.
Whether a plaintiff who had the right but failed to join a reformation claim in a prior breach-of-contract action decided on the merits is precluded from later bringing a separate action to reform that same contract.