Opinion

Heard Farms, Inc. v. Franzenburg LLC

Court
District Court, D. Oregon
Filed
Aug 28, 2025
Cited by
0 cases
Authority
More cited than 39.1%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

EUGENE DIVISION

HEARD FARMS, INC., Case No. 6:24-cv-01696-MC

Plaintiff, OPINION AND ORDER

v.

FRANZENBURG LLC,

Defendant.

MCSHANE, Judge:

Plaintiff Heard Farms, Inc. filed this action against Defendant Franzenburg LLC, asserting

three claims for relief: breach of contract, negligence, and unlicensed contractor. Notice Remov.

Ex. 1, ECF No. 1 (“Compl.”).1 Previously, the Court granted summary judgment against Plaintiff’s

unlicensed contractor claim, finding that no genuine dispute of material fact existed after Plaintiff

failed to respond to the motion. Op. & Order, ECF No. 14. Now, Plaintiff moves the Court to

reconsider that Order in light of Plaintiff’s late-filed response. Pl.’s Mot. Recon., ECF No. 16.2

For the reasons discussed below, the Court GRANTS Plaintiff’s Motion for

Reconsideration but again GRANTS Defendant’s Motion for Summary Judgment.

1 Plaintiff initiated this action in Douglas County Circuit Court on July 19, 2024, and served Defendant on

September 6, 2024. Notice Remov. 2. Defendant timely removed the action to this federal court based on diversity

jurisdiction. Id. at 3–4.

2 With its Motion to Reconsider, Plaintiff included a revised Declaration of Heard Farms’ president, Richard Heard,

and a Response to Defendant’s Motion for Summary Judgment. See Pl.’s Mot. Ex. 2 (Heard Declaration); Ex. 3

(Plaintiff’s Response).

BACKGROUND.

In early 2022, Plaintiff, an Oregon corporation, purchased a pre-owned centrifuge to use at

its water treatment plant in Roseburg, Oregon. Pl.’s Mot. Ex. 2, at 1; Rose Decl. Ex. 1, at 3, ECF

No. 18. The centrifuge serves as a critical part of Plaintiff’s dewatering facility, where it spins

wastewater until it separates into useable filtrates and solids. Pl.’s Mot. Ex. 2, at 2. When

operational, the centrifuge sits inside an outer body that is mounted to a platform on top of four

concrete pillars and a concrete base. Id. At its center is a two-by-sixteen-foot rotating cylinder,

sometimes called the “rotating assembly” or “rotating unit.” Id.

Defendant is an Iowa company that rebuilds, repairs, and sells centrifuges. Am. Tracy Decl.

¶¶ 2–3, ECF No. 13. Shortly after the purchase, Plaintiff sent its centrifuge to Defendant for

maintenance and refurbishing. Id. at ¶ 7. Their agreement was to proceed as follows: after the

repairs were complete, Plaintiff would set the case of the machine on its base and complete the

initial set-up of the controls, and then, at the shared expense of both parties, Defendant would send

a technician to Plaintiff’s plant to assist with installing the rotating assembly in the main frame.

Pl.’s Resp. Ex. 2, at 4, 5; see also Rose Decl. Ex. 1, at 3, 8. The centrifuge arrived at Defendant’s

facility in pieces on February 13, 2022. Am. Tracy Decl. ¶ 8. Defendant completed the renovations

and shipped the pieces back to Plaintiff the following June. Id. at ¶ 11. However, when they arrived,

Plaintiff noticed that one of the components had been contaminated with sand while in Defendant’s

possession. Id. at ¶ 12. Plaintiff sent it back on August 10, 2022, and Defendant fixed the issue

under warranty before returning it to Plaintiff on October 28, 2022. Id. at ¶¶ 13–15. The parties

continued according to the plan; Plaintiff poured the concrete base and hired a company to build

the control panels. Rose Decl. Ex. 1, at 3, 10. In May 2023, Plaintiff informed Defendant that the

surrounding infrastructure was ready, and Defendant responded that they would schedule a

technician. Id. at 4, 17. From June through September of 2023, Defendant traveled to Plaintiff’s

facility four times while the centrifuge was exhibiting ongoing issues. Pl.’s Resp. Ex. 2, at 3.

During those visits, Defendant provided feedback on the centrifuge’s apparent defects but did not

perform any work on Plaintiff’s buildings or structures. Am. Tracy Decl. ¶¶ 16, 20.

Because the centrifuge remained inoperable, Plaintiff eventually hired a separate centrifuge

repair person in February 2024. Pl.’s Mot. Ex. 2, at 7. Plaintiff contends that the repairs cost

$25,886.75 and resulted from Defendant’s failure to properly renovate the centrifuge. Id. Plaintiff

subsequently filed its Complaint, alleging that Defendant acted negligently and in breach of their

contract when it damaged the centrifuge at its facility in Iowa. See Compl. ¶¶ 1–6. In its Third

Claim, Plaintiff additionally asserted that Defendant is liable for attorney fees because it is not

registered with the Oregon Secretary of State or with the Oregon Construction Contractors Board.

Id. at ¶ 7. The instant dispute is limited to the Third Claim.

On June 2, 2025, Defendant moved for partial summary judgment on Plaintiff’s Third

Claim; Plaintiff never filed a response. Def.’s Mot. Summ. J. 2, ECF No. 11. The Court granted

the motion on July 8, 2025, and then on July 15, Plaintiff moved this Court to reconsider that

Order, explaining that Plaintiff’s counsel had intended to file a response to the motion but

inadvertently failed to do so. See Pl.’s Mot. Ex. 1. In his Declaration, Plaintiff’s counsel explains

that he prepared and served an unfiled response and declaration on Defendant’s counsel on July 7,

2025—two weeks after Plaintiff’s response was due. Id. at 1–2; see also Rose Decl. ¶ 4. Plaintiff’s

counsel, however, failed to electronically file it with the Court or otherwise notify the Court of its

existence. Id. Because Plaintiff hopes to re-open the question of summary judgment, Defendant,

in turn, has filed a Response opposing reconsideration and a Reply in support of its prior motion.

Def.’s Resp., ECF No. 17; Def.’s Reply, ECF No. 19.

DISCUSSION

The Court resolves the Motions as follows.

I. Reconsideration

To alter or amend a final judgment is “an extraordinary remedy” and must be used

“sparingly in the interests of finality and conservation of judicial resources.” Kona Enters., Inc. v.

Estate of Bishop, 229 F.3d 877, 890 (9th Cir. 2000). Under Federal Rule of Civil Procedure 59(e),

reconsideration is appropriate only if a court (1) committed a “manifest[] error of law,” (2)

precipitated a “manifest injustice,” (3) is presented with “newly discovered or previously

unavailable evidence,” or (4) learns about an “intervening change in the controlling law.” Rishor

v. Ferguson, 822 F.3d 482, 491–92 (9th Cir. 2016) (citations omitted).

Here, Plaintiff does not argue that any of the above-mentioned circumstances apply to this

situation. See Pl.’s Mot. 1. Rather, Plaintiff’s counsel takes responsibility for failing to timely

respond to Defendant’s motion and requests this Court consider Plaintiff’s belated Response now.

Defendant opposes, arguing that there is no legal basis for this Court to reconsider its decision.

Def.’s Resp. 1. Further, Defendant highlights that the Heard Declaration filed by Plaintiff in

conjunction with its Motion differs from the declaration that Plaintiff originally served on

Defendant. Compare Pl.’s Mot. Ex. 2, at 3–8 with Rose Decl. Ex. 1, at 3–5. The version that

Plaintiff chose to file—which contains revised statements—had the added advantage of reviewing

the Court’s Order granting summary judgment prior to submission.

Although Defendant is correct, the Court finds no utility in evaluating a summary judgment

motion on less evidence. The two declarations are largely the same, and the portions that differ do

not concern facts material to the outcome of these Motions. Further, because the Court’s

conclusion remains the same that Defendant is entitled to summary judgment on the Third Claim,

the Court does not find that considering Plaintiff’s late submission will unduly prejudice

Defendant.

Preferring to resolve the matter on the substantive motions, the Court agrees to grant

Plaintiff’s request to reconsider its Order in light of Plaintiff’s recent filings. As explained below,

however, Plaintiff’s Response still fails to establish a question of fact, so the Court again grants

summary judgment in Defendant’s favor.

II. Summary Judgment

A party is entitled to summary judgment if the “movant shows that there is no genuine

dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R.

Civ. P. 56(a). The moving party bears an initial burden to show the absence of a genuine issue of

material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986). To meet its burden, “the moving

party must either produce evidence negating an essential element of the nonmoving party’s claim

or defense or show that the nonmoving party does not have enough evidence of an essential

element to carry its ultimate burden of persuasion at trial.” Nissan Fire & Marine Ins. v. Fritz Cos.,

210 F.3d 1099, 1102 (9th Cir. 2000). When the moving party has met its burden, the non-moving

party must then present “specific facts showing that there is a genuine” dispute of material fact.

Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586–87 (1986) (quoting Fed. R.

Civ. P. 56(e)). The court reviews evidence and draws inferences in the light most favorable to the

non-moving party. Miller v. Glenn Miller Prods., Inc., 454 F.3d 975, 988 (9th Cir. 2006) (quoting

Hunt v. Cromartie, 526 U.S. 541, 552 (1999)).

Here, the dispute is limited to Plaintiff’s Third Claim. It alleges:

“Defendant is not registered with the Oregon Sectary of State or with

the Oregon Construction Contractors Board and is liable for attorney

fees under ORS 701.128.”

Compl. ¶ 7. Plaintiff has since admitted that Defendant was not required to register with the Oregon

Secretary of State. See Pl.’s Mot. Ex. 3, at 3. That allegation is therefore dismissed. What remains

is whether Plaintiff’s claim for attorney fees under ORS 701.128 can survive summary judgment.

The Court concludes it cannot.

ORS 701.128 creates a “[s]uit for damages for misrepresentation.” ORS 701.128

(emphasis added). It provides:

If any person suffered costs or damages as a result of an individual

providing a false or invalid Construction Contractors Board

[“CCB”] number or otherwise misleading a person with respect to

licensure with the board, that person may bring suit in a court of

competent jurisdiction to recover damages. The court may award

reasonable attorney fees to the prevailing party in an action under

this section.

Id. Defendant moved for summary judgment on the Third Claim, arguing that here, (1) Plaintiff

has presented no evidence that Defendant provided a false or invalid CCB number or otherwise

misrepresented its CCB license status to Plaintiff and (2) Defendant cannot be considered “a

contractor” as defined under ORS 701.128. Def.’s Mot. 5–7.

With respect to Defendant’s first argument, Plaintiff’s only response is confusing. Plaintiff

reiterates Defendant’s “admission” that there is no evidence to support this claim and then states:

“This is [Defendant’s] problem. [Plaintiff] is not required to provide any opposing evidence.” Pl.’s

Mot. Ex. 3, at 2. It should go without saying, Plaintiff is required to provide evidentiary support

for its claims. What’s more, given that this Court’s prior decision to grant summary judgment was

based almost entirely on Plaintiff’s failure to identify any supporting evidence, its puzzling that

Plaintiff elected not to substantively engage with this argument. Indeed, ORS 701.128 creates a

damages claim against a person who provides a false or invalid CCB license number or misleads

one regarding that licensure. Here, Plaintiff proffers zero evidence that could support an inference

that Defendant mislead Plaintiff with respect to CCB licensure. Nothing on the record indicates

that Defendant represented itself as having a valid CCB license, nor that Defendant—a company

based in Iowa—typically does construction contractor work in Oregon and would be expected to

have a CCB license number. Plaintiff does not allege to have seen any CCB number on any of the

plans or to have stipulated to that being requirement in the parties’ agreement which Defendant

signed anyway. In fact, the only exhibit offered by Plaintiff is the Heard Declaration, which merely

disputes specific pieces of Defendant’s version of event. See Pl.’s Mot. Ex. 2, at 3 (Defendant

stated it came to Oregon once; Plaintiff asserts Defendant came four times); at 4 (Defendant stated

that the sole purpose of its visits was to advise Plaintiff on the centrifuge’s oil system; Plaintiff

contends all visits were related to the installation of the centrifuge); at 5–6 (Defendant stated that

it did not install the centrifuge; Plaintiff asserts Defendant did).3 Even accepting Plaintiff’s

characterization of the events and construing the allegations in Plaintiff’s favor, no facts have been

alleged that would allow the Court to infer that Defendant may have misrepresented or mislead

Plaintiff with respect to CCB licensure. Without any evidence or even allegations of damages that

resulted from Defendant misleading Plaintiff, Plaintiff cannot recuperate attorney fees for

misrepresentation.

On Defendant’s second argument, Plaintiff provides slightly more resistance. Plaintiff

argues that summary judgment is improper as to the Third Claim because a dispute of fact exists

in relation to whether Defendant acted as a “contractor” within the meaning of ORS 701.128. For

a few reasons, this argument fails to change the Court’s prior holding. First, as explained, Plaintiff

cannot prevail on a claim for misrepresentation without providing any evidence or even allegations

of Defendant’s alleged misrepresentation. As much was explained in the prior Order, when the

3 Plaintiff provides these statements only in the Declaration of Richard Heard. Counsel did not attach or file the

numerous email exhibits and photograph referenced throughout the Declaration.

Court declined to engage with Defendant’s alternative argument, finding that “adequate

independent grounds for dismissal exist, obviating the Court’s need to.” Op. & Order 4. Setting

that deficiency aside, however, Plaintiff still fails to demonstrate a dispute of fact exists as to

whether Defendant acted as a contractor such that it was required to possess a CCB license. Under

ORS Chapter 701, Oregon’s statutory scheme governing construction contractors and contracts,

Oregon requires a CCB license anytime a person undertakes, or offers to undertake, or submits a

bid to do work “as a contractor.” ORS 701.021(1). The term “contractor” refers to “a person that,

for compensation or with the intent to sell, arranges or undertakes or offers to undertake or submits

a bid to construct, alter, repair, add to, subtract from, improve, inspect, move, wreck or demolish,

for another, a building, highway, road, railroad, excavation or other structure, project, development

or improvement attached to real estate, or to do any part thereof.” ORS 701.005(5)(a). Persons

who “perform work peripheral to construction” may be exempt from the licensure requirement,

including those “constructing, altering, improving or repairing personal property.” ORS

701.010(1). Here, Defendant simply does not fit the statutory definition. The record demonstrates

that Defendant performed repairs on component parts of Plaintiff’s personal property while it was

taken apart in Iowa. Defendant later hired a technician to install the rotating assembly into the

mainframe in Oregon and visited Plaintiff’s plant for advisement purposes only. Defendant did not

perform any structural work, nor was it its role to. Any structural work to the machine (i.e., the

cement pillars, foundation, and construction of surrounding infrastructure) was accomplished by

Plaintiff or contractors that Plaintiff hired. Plaintiff provides a declaration disputing Defendant’s

characterization of events, but it does not explain why those events require this Court to construe

Defendant’s role as a “construction contractor” requiring CCB licensure.

Because Plaintiff has failed to come forward with any evidence that would create a genuine

dispute of material fact regarding the allegation that Defendant provided false, invalid, or

misleading information about having a CCB license, Defendant is entitled to judgment on

Plaintiff’s Third Claim.

CONCLUSION

For the reasons provided above, the Court GRANTS Plaintiff’s Motion for

Reconsideration, ECF No. 16. However, because Plaintiff still fails to demonstrate a genuine

dispute of fact as to its Third Claim for Relief, Defendant remains entitled to judgment as a matter

of law on that claim. The Court therefore GRANTS Defendant’s Motion for Summary Judgment,

ECF No. 11, again.

IT IS SO ORDERED.

DATED this 28th day of August 2025.

s/Michael J. McShane _

Michael McShane

United States District Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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