Green Bay Packaging, Inc. v. Hoganson & Associates, Inc.

362 F. Supp. 78
CourtDistrict Court, N.D. Illinois
DecidedAugust 7, 1973
Docket72 C 59
StatusPublished
Cited by13 cases

This text of 362 F. Supp. 78 (Green Bay Packaging, Inc. v. Hoganson & Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Bay Packaging, Inc. v. Hoganson & Associates, Inc., 362 F. Supp. 78 (N.D. Ill. 1973).

Opinion

MEMORANDUM OPINION AND ORDER

BAUER, District Judge.

This cause comes on the plaintiff’s motion to strike or dismiss the defendants’ six count counterclaim.

This is an action for declaratory judgment pursuant to 28 U.S.C. § 2201. Jurisdiction of this Court is based on diversity of citizenship. It is alleged by the plaintiff that the matter in controversy exceeds $10,000 exclusive of interest and costs.

The plaintiff, Green Bay Packaging, Inc. (“Green Bay”), is a corporation organized and existing under the laws of the State of Wisconsin, with its principal place of business at Green Bay, Wisconsin. It is engaged in the manufacture and sale of paperboard corrugated containers.

The defendant Hoganson and Associates, Inc. is a corporation organized and existing under the laws of the State of Illinois, with its principal place of business at Freeport, Illinois. It is engaged in the business of selling on commission and acting as a manufacturer’s representative. Defendant Allan Hogan-son is a resident of Freeport, Illinois and is the principal owner and control person of Hoganson & Associates, Inc.

The plaintiff in the complaint alleges, inter alia, the following facts:

1. On or about January 1961, plaintiff entered into an oral arrangement with the defendant Allan Hoganson, who was doing business as Hoganson & Associates, an unincorporated entity. The defendant indicated that he would procure sales of plaintiff’s product to the Structo Manufacturing Company (“Structo”) in Freeport, Illinois, in return for which he would receive a five percent (5%) brokerage commission. This arrangement was never formalized. An attempt was made in 1961 to reduce said arrangement to writing, but no meeting of the minds was achieved, and, consequently, the arrangement remained oral. Defendant Hoganson & Associates, Inc. became incorporated in the State of Illinois and succeeded to the Business of Hoganson & Associates. During the period from 1961 to 1970, defendant played an increasingly less active role in obtaining orders from Structo, as a reflection of which all of the parties twice arranged to reduce the percentage commission to be paid defendants on sales to Structo. Finally, in 1970, Structo requested of plaintiff that it be allowed to deal directly with the plaintiff. The existing arrangement provided that whenever an order was accepted from Structo, a commission was paid to Hoganson & Associates, Inc. The continued efforts to enter into a contract failed, for the parties were unable to agree upon the key terms which were necessary for any proper agreement.
2. On or about March, 1963, plaintiff entered into an oral arrangement with defendant Allan Hoganson, doing business as Hoganson & Associates, an unincorporated entity, whereby the defendant indicated that he would procure sales of plaintiff’s products to Newell Manufacturing Company (“New-ell”) in Freeport, Illinois, in return for which he would receive a five percent brokerage commission. Due to the previous failure of the parties to agree upon a contract concerning Structo, the parties did not attempt to reduce this arrangement as to sales to Newell to writing. Again over the years, *80 defendants also assumed an increasingly less active role in obtaining orders from Newell, as a reflection of which all of the parties twice arranged to reduce the percentage of commission to be paid to defendant on sales to New-ell. In 1970, Newell also requested that it be allowed to deal directly with the plaintiff.
3. The two above described arrangements between plaintiff and defendants were terminated by specific agreement of the parties on April 28, 1970, effective May 1, 1970. Letters to this effect were sent by plaintiff to Structo and Newell on May 5, 1970, advising them that, henceforth, they could deal directly with plaintiff. Pursuant to its termination agreement with defendants, plaintiff agreed to pay defendants’ commission not only on those orders accepted prior to termination, but also any orders accepted from either Structo or Newell for the remainder of the calendar year. Purchase orders were received by plaintiff directly from Structo and Newell during this period, and defendants were offered, and accepted, payment of a commission on all orders accepted by plaintiff through December 31,1970.
4. A dispute exists between the parties with respect to the foregoing matter. It is the position of the plaintiff that the above described arrangements between plaintiff and defendants have been absolutely terminated, with defendants having no further rights, privileges, claims, obligations or responsibilities thereunder. The plaintiff has the following reason for its position:
a. that any claimed contract or agreement was void ab initio for vagueness and uncertainty, and consequently would be unenforceable;
b. that having accepted the benefits of plaintiff’s payment of commissions in the face of an inability to come to agreement, defendants are estopped to claim on agreement;
c. that any purported agreement is unenforceable for failure to comply with the Statute of Frauds, Chapter 59, Section 1 of the Illinois Revised Statutes;
d. regardless of the terms of the purported arrangement, defendants accepted payment of commissions from May 1, 1970 through December 31, 1970, in termination of said arrangement which was adequate consideration for the agreed terms of an accord and satisfaction, as a result of which any further claims of defendants are barred.

The defendants have filed a six count counterclaim against the plaintiff.

In Count I of the counterclaim the defendants claim that the plaintiff breached an oral contract between the parties relating to sales to Structo by refusing and failing to pay to defendants after January 1, 1971 the commissions due pursuant to the contract. The defendants seek an accounting by the plaintiff of all sales made by it to Structo from January 1, 1971 to the date of the accounting, payment of commissions due based on the accounting and costs of maintaining this action.-

In Count II the defendants claim on information and belief that during 1970 Structo promised and agreed with plaintiff that Structo would by a course of continuing conduct shut out and discourage defendant Allan Hoganson from communicating with Structo personnel regarding matters relating to the instant contract and sales. On information and belief the defendants further allege that the plaintiff in return for the shut out of the defendant agreed with Structo that it would after January 1, 1971 reduce its prices on sales to Structo as *81 an allowance or discount in lieu of the brokerage commissions which had theretofore been included in said prices, and which allowance or discount was the equivalent of the brokerage commission previously paid to defendants. This agreement and conduct of plaintiff and Structo was in violation of 15 U.S.C. § 13(c).

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Bluebook (online)
362 F. Supp. 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-bay-packaging-inc-v-hoganson-associates-inc-ilnd-1973.