Baldewein Co. v. Tri-Clover, Inc.

183 F. Supp. 2d 1116, 2002 U.S. Dist. LEXIS 1687, 2002 WL 104814
CourtDistrict Court, E.D. Wisconsin
DecidedJanuary 24, 2002
Docket97-CIV-213
StatusPublished
Cited by2 cases

This text of 183 F. Supp. 2d 1116 (Baldewein Co. v. Tri-Clover, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baldewein Co. v. Tri-Clover, Inc., 183 F. Supp. 2d 1116, 2002 U.S. Dist. LEXIS 1687, 2002 WL 104814 (E.D. Wis. 2002).

Opinion

DECISION AND ORDER

RANDA, District Judge.

The Baldewein Company (“Baldewein”), an Illinois corporation with its principal *1117 place of business in Franklin Park, Illinois, has sued Tri-Clover, Inc. (“Tri-Clover”), a Delaware corporation with its principal place of business in Kenosha, Wisconsin, under the Wisconsin Fair Dealership Law (‘WFDL”). Baldewein contracted to distribute Tri-Clover’s line of sanitary food process equipment, including fittings, valves, pumps, and tubing. The relationship endured for 56 years until, in June of 1996, Tri-Clover terminated the distributorship, and Baldewein sued. Tri-Clover counterclaimed for the value of unpaid-for shipments.

On March 9, 1998, the Court granted summary judgment in Tri-Clover’s favor. The Court held that due to Baldewein’s minimal level of sales in Wisconsin, its dealership was not “situated in” Wisconsin as required to hold Tri-Clover, the grantor of the dealership, liable under the WFDL. On appeal, the Seventh Circuit certified the matter to the Wisconsin Supreme Court which resulted in that Court answering the question, “when is a dealership ‘situated in this state’ under Wis.Stat. § 135.02(2), thereby entitling the dealer to protection under the [WFDL]?” Baldewein Company v. Tri-Clover, Inc., 233 Wis.2d 57, 61, 606 N.W.2d 145, 146 (2000). In its answer the Wisconsin Supreme Court set forth a multi-factor test to be applied in determining when a dealership is “situated in” Wisconsin for purposes of the WFDL. Because this Court relied only on one factor in reaching its decision, the Seventh Circuit then reversed and remanded the case for further development of the evidence and application of the new multi-factor test established by the Wisconsin Supreme Court. Baldewein Company v. Tri-Clover, Inc., 2000 WL 817674, 221 F.3d 1338 (2000) (unpublished disposition).

After further development of the facts and new arguments on the multi-factor test, cross-motions for summary judgment are once again before the Court. For the reasons stated below, the defendant’s motion for summary judgment is granted, the plaintiffs motion for summary judgment is denied, and the case is dismissed.

BACKGROUND

Baldewein was a distributor for TriClover for 56 years. Baldewein’s Proposed Findings of Fact (“PFOF”), ¶ 3; Tri-Clover’s Response to PFOF (“DR”), ¶ 3. Baldewein’s territory included the entire United States as well as some foreign countries. PFOF, ¶ 3. Over the years, Baldewein had come to rely upon its dealership with Tri-Clover. During the fiscal year which ended October 31, 1995, in excess of 81% of Baldewein’s total sales, including installation and fabrication, were derived from the sale of Tri-Clover products. PFOF, ¶ 4; DR ¶4. Sale of the products alone represented 67.5% of Bal-dewein’s total sales. 1 Id. Until the relationship was terminated, approximately 90% of Baldewein’s efforts were devoted to promoting Tri-Clover products. PFOF, ¶ 18.

The parties agree that the vast majority of Baldewein’s sales were always to Illinois customers. Tri-Clover’s Proposed Findings of Fact (“DFOF”), ¶ 8; PFOF, ¶ 16. The percentage of Baldewein’s sales to Wisconsin customers in the years leading up to termination were as follows: 0.5% for fiscal year 1992, 2.8% for 1993, 2.4% for 1994, 7% or 7.3% for 1995 2 , and 7.2% for 1996. Court’s March 9, 1998 Decision and *1118 Order (“Decision and Order”), pp. 2-3; DFOF, ¶ 1; Baldewein’s Response to DFOF (“PR”), ¶ 1. Neither party has produced Wisconsin sales figures for the prior fifty-one years of the relationship. However, Baldewein maintains, and Tri-Clover does not dispute, that there has always been some level of Wisconsin sales. PFOF, ¶ 17; DR, ¶ 17. Nonetheless, the Court is inclined to presume, as it did previously, that this level of sales was only de minimis, 3 Decision and Order, fn. 3.

In the early to mid-1990’s, Baldewein hired two employees who lived in and worked out of Wisconsin. These ‘Wisconsin Employees” were hired to promote and increase sales in Wisconsin. PFOF, 138. The first employee, Jeff Stevens (“Stevens”), worked for Baldewein from 1991 to 1994. 4 DFOF, ¶ 26. Stevens kept inventory at his Wisconsin home. DFOF, ¶ 22; PR, ¶ 22. The other employee, Jeff Spore (“Spore”), worked for Baldewein in 1995 and 1996, after Stevens left. Id.; DFOF, ¶ 27. Spore also kept inventory at his Wisconsin residence. PFOF, ¶ 36 A. Valentin (“Val”) Baldewein, owner and officer of Baldewein, maintained inventory at a lake cottage in Wisconsin during the 1980’s. PFOF, ¶ 36 A. Val has since sold the home and no longer maintains inventory in the state. DFOF, ¶ 21.

SUMMARY JUDGMENT STANDARDS

Under Rule 56(c), summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

Summary judgment is no longer a disfavored remedy. “Summary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of the Federal Rules as a whole, which are designed ‘to secure the just, speedy and inexpensive determination of every action.’” Id., at 327, 106 S.Ct. 2548. It “can be a tool of great utility in removing factually insubstantial cases from crowded dockets, freeing courts’ trial time for those that really do raise genuine issues of material fact.” United Food and Commercial Workers Union Local No. 88 v. Middendorf Meat Co., 794 F.Supp. 328, 330 (E.D.Mo.1992). Thus, “the plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex, 477 U.S. at 322, 106 S.Ct. 2548. “[T]he mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). While a material fact is one that is “outcome determinative under the governing law”, Whetstine v. Gates Rubber Co., 895 F.2d 388, 392 (7th Cir.1990), a genuine

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Bluebook (online)
183 F. Supp. 2d 1116, 2002 U.S. Dist. LEXIS 1687, 2002 WL 104814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldewein-co-v-tri-clover-inc-wied-2002.