K & S Tool & Die v. Perfection MacHinery

2007 WI 70, 732 N.W.2d 792
CourtWisconsin Supreme Court
DecidedJune 12, 2007
Docket2005AP2148
StatusPublished
Cited by1 cases

This text of 2007 WI 70 (K & S Tool & Die v. Perfection MacHinery) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K & S Tool & Die v. Perfection MacHinery, 2007 WI 70, 732 N.W.2d 792 (Wis. 2007).

Opinion

732 N.W.2d 792 (2007)
2007 WI 70

K & S TOOL & DIE CORPORATION, Plaintiff-Respondent,
v.
PERFECTION MACHINERY SALES, INC., Defendant-Appellant-Petitioner,
Industrial Rebuilding & Machining, Inc., Defendant,
United National Insurance Company, Intervenor.

No. 2005AP2148.

Supreme Court of Wisconsin.

Argued December 14, 2006.
Decided June 12, 2007.

*795 For the defendant-appellant-petitioner there were briefs by Gregory P. Seibold and Murphy Desmond D.C., Madison; Paul T. Fox and Greenberg Traurig, LLP, Chicago, IL, and oral argument by Gregory P. Seibold.

For the plaintiff-respondent there was a brief by Michael J. Hanrahan and Fox, O'Neill & Shannon, S.C., Milwaukee, and oral argument by Michael J. Hanrahan.

¶ 1 JON P. WILCOX, J.

This is a review of a published court of appeals decision, K & S Tool & Die Corporation v. Perfection Machinery Sales, Inc., 2006 WI App 148, 295 Wis.2d 298, 720 N.W.2d 507. The court of appeals affirmed a judgment of the Jefferson County Circuit Court, Jacqueline R. Erwin, Judge, in favor of K & S Tool & Die Corporation (K & S). K & S claimed that Perfection Machinery Sales, Inc. (Perfection) violated Wis. Stat. § 100.18 (2005-06),[1] Wisconsin's Deceptive Trade Practices Act (DTPA), by making a misrepresentation about the pressing force of a press K & S purchased from Perfection. After a trial, the jury found in favor of K & S.

¶ 2 Perfection petitioned this court for review of two issues. First, whether the circuit court erred in ruling that Perfection was not entitled to a ruling as a matter of law pertaining to K & S's status as a member of "the public" for the purpose of Wis. Stat. § 100.18(1).[2] We hold that the circuit court did not err because whether K & S was a member of "the public" under § 100.18(1) presented a question of fact *796 that the court properly submitted to the jury. Second, whether the jury erred in finding that the misrepresentation in Perfection's quotation for the two 1000-ton presses caused K & S pecuniary loss pursuant to Wis. Stat. § 100.18(11)(b)2.[3] We hold that the jury did not err because sufficient evidence supports its finding. Accordingly, we affirm the court of appeals.

I

¶ 3 K & S creates metal parts and dies in Ixonia, Wisconsin. One service offered by K & S is production stamping, which entails using a press and a die to stamp steel into parts.

¶ 4 Late in 1999, or early in 2000, John Deere approached K & S about creating platforms for some of its riding lawnmowers. As an initial step, K & S began building a die. It performed die tryouts with a press that had a 450-ton pressing force.[4]

¶ 5 After completing the die, K & S began producing the platforms with their 450-ton press. It soon discovered that it needed a press with at least a 1000-ton pressing force. A 1000-ton press would allow K & S to create the platforms with one hit, rather than needing multiple hits from its 450-ton press. Needing fewer hits would allow K & S to create the platforms more profitably. Upon its discovery, K & S began shopping for a 1000-ton press.

¶ 6 Perfection, an Illinois corporation, sells used industrial machinery to commercial clients nationwide. When K & S began looking for a 1000-ton press, it was familiar with Perfection because Perfection had periodically sent K & S catalogs highlighting its inventory. K & S had also purchased a machine known as a roll former from Perfection in 1996.

¶ 7 Thomas Klusken (Klusken), an owner of K & S, contacted Jason Broderick (Broderick), a Perfection sales representative, to inquire about the 1000-ton press K & S sought. Perfection had a 1000-ton Danly press in its inventory, but it did not have the cushions that K & S required. With the 1000-ton Danly press not being suitable, Perfection did not have a press meeting K & S's specifications in its inventory. However, the conversation between Klusken and Broderick ended with Broderick agreeing to keep an eye out for a 1000-ton press that fit K & S specifications.

¶ 8 Broderick subsequently contacted Klusken to inform him that he had found two 1000-ton presses in Michigan. Shortly thereafter, Perfection faxed a quotation to K & S on Perfection letterhead that began with form language stating "GENTLEMEN: We are pleased to offer for your consideration . . ." followed by

TWO (2) 1000 TON CLEARING STRAIGHT SIDE PRESSES

Model #: SE4-1000-108-60

Serial No.: 10-1646 and 10-4163

   Bed Area:               108" × 60"
   Ram Area:               108" × 60"
   Stroke:                  20"
   Adjustment:              15"
   Shut Height:             50"
   SPM:                     25
   Bolster:                  8" "T" Slotted
*797
   Cushions
   Gibbings:                  8 point
   T-Slotted Ram
   Controls
   Recirculating Lube System
   Pit
   Hydraulic Overloads
   Hydraulic Tie-Rod Nuts
   PRICE:.......$225,000.00 Each As Is Loaded

SPECIFICATIONS ARE APPROXIMATE ONLY, INTENDED SOLELY AS A GUIDE AND ARE NOT BINDING

The letterhead also stated the following at the bottom: "THE COUNTRY'S LARGEST INVENTORY OF USED LATE MODEL PRESSES, FABRICATING & METALWORKING EQUIPMENT."

¶ 9 K & S hired Industrial Rebuilding & Machining, Inc. (Industrial Rebuilding) to inspect the condition of the two presses, both of which were dismantled. The inspection did not include assessing the pressing force. After the inspection, Industrial Rebuilding recommended one of the presses over the other. K & S contacted Perfection to let it know that it was interested in purchasing the press that Industrial Rebuilding recommended. Perfection then purchased the press and sold it to K & S. After K & S had purchased the press, it hired Industrial Rebuilding to rebuild and install the press in K & S's plant.

¶ 10 When K & S began using the press, it discovered that the press failed to function as expected. Rather than creating the John Deere platforms with one hit, it took three hits. After K & S unsuccessfully attempted to adjust the press to remedy the problem, it contacted the manufacturer of the press. The manufacturer informed K & S that it had bought an 800-ton press, which had been converted from a 1000-ton press.

¶ 11 K & S filed suit against Perfection and Industrial Rebuilding asserting a number of claims. Although K & S settled its claims against Industrial Rebuilding, it proceeded to trial against Perfection claiming that Perfection had violated the DTPA.

¶ 12 After the close of K & S's evidence, Perfection moved to dismiss on two grounds. First, Perfection argued that K & S had provided no evidence that it had relied on Perfection's quotation when it purchased the 800-ton press. Second, Perfection argued that K & S was not a member of "the public" for the purpose of § 100.18(1). The circuit court denied the motion to dismiss as it pertained to reliance, but took the motion under advisement as it related to whether K & S was a member of "the public."

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2007 WI 70, 732 N.W.2d 792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-s-tool-die-v-perfection-machinery-wis-2007.