A legal team from Greenberg Traurig, LLP successfully represented FCA US LLC, a division of Stellantis, in a significant case before the Michigan Court of Appeals. The case involved over 1.3 million contracts with FCA’s suppliers and questioned their enforceability.
“We are pleased with the Michigan Court of Appeals’ published decision affirming the enforceability of FCA’s requirements contract with Kamax Inc.,” stated Michelle D. Gambino, Greenberg Traurig Shareholder and leader of the attorney team. “The court correctly upheld the longstanding law that a range — such as 65% to 100% of FCA’s requirements — can serve as a valid and enforceable quantity term under Michigan law.”
The conflict began in 2024 when Kamax, a supplier, threatened to halt part shipments unless FCA agreed to noncontractual price increases. After Stellantis refused these terms, Kamax stopped deliveries, arguing that the contract lacked a sufficient quantity term.
Kamax’s actions resulted in temporary closures at two FCA plants and halted vehicle production. To prevent further disruption, FCA sought legal intervention for Kamax to resume part shipments based on their existing contract. The court issued orders mandating Kamax to continue supplying parts.
Kamax subsequently sought summary judgment by referencing a recent Michigan Supreme Court ruling requiring specific quantity terms in contracts under the Uniform Commercial Code and statute of frauds.
Following extensive legal proceedings, FCA prevailed at trial with its purchase orders deemed valid due to their range-based quantity terms. Undeterred by this outcome, Kamax appealed to the Michigan Supreme Court which deferred to the Court of Appeals for initial consideration.
On May 6, appellate counsel Cynthia Filipovich and Gambino presented arguments before the Michigan Court of Appeals. A week later, in a per curiam published decision, the appellate court upheld the trial court’s ruling supporting FCA’s stance on using ranges as valid quantity terms.
This decision not only validated over 1.3 million supply contracts but also potentially impacts millions more utilizing similar terms in purchase orders.
Additional members involved from Greenberg Traurig included Shareholders David G. Barger and Shawn R. McIntee, Of Counsel Mohsin S. Reza, Associate Robert “Woody” Angle, alongside appellate counsel Filipovich from Clark Hill.
