Kenneth Henes Special Projects Procurement v. Continental Biomass Industries, Inc.

86 F. Supp. 2d 721, 2000 U.S. Dist. LEXIS 1499, 2000 WL 205420
CourtDistrict Court, E.D. Michigan
DecidedFebruary 10, 2000
Docket2:98-cv-72966
StatusPublished
Cited by27 cases

This text of 86 F. Supp. 2d 721 (Kenneth Henes Special Projects Procurement v. Continental Biomass Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenneth Henes Special Projects Procurement v. Continental Biomass Industries, Inc., 86 F. Supp. 2d 721, 2000 U.S. Dist. LEXIS 1499, 2000 WL 205420 (E.D. Mich. 2000).

Opinion

OPINION AND ORDER REGARDING (1) DEFENDANT’S MOTION FOR NEW TRIAL AND AMENDMENT OF JUDGMENT; (2) PLAINTIFF’S MOTION FOR AMENDMENT OF JUDGMENT; AND (3) PLAINTIFF’S MOTION FOR ATTORNEYS’FEES

ROSEN, District Judge.

I. INTRODUCTION

This matter is before the Court on a number of post-trial motions, to-wit, (1) Defendant’s Motion ■ for New Trial and Amendment of Judgment; (2) Plaintiffs Motion for Amendment of Judgment; and (3) Plaintiffs Motion for Attorney Fees. Having reviewed and considered the parties’ motion, briefs and supporting documents, and the Court’s record of this action, the Court has determined that oral argument is not necessary, therefore, pursuant to Local Rule 7.1(e)(2), these motions will be decided on the, briefs. This Opinion and Order sets forth the Court’s ruling.

II. PERTINENT FACTS

Plaintiff Kenneth Henes Special Projects, Procurement, Marketing and Consulting Corporation (“Henes”) is, a former sales representative of Defendant Continental Biomass Industries, Inc. .(“CBI”). After CBI terminated its eight-year-long relationship with Henes in 1998, Henes brought suit to recover unpaid commissions due and owing as a result of sales of CBI equipment procured by Henes. In its Amended Complaint, Henes sought recovery of the unpaid commissions under two theories — common law breach of contract and violation of the Michigan Sales Representative Act, M.C.L. § 600.2961.

The case was tried to a jury and after a five-day trial, the jury returned a verdict finding that Plaintiff was owed commissions by Defendant on four sales. Specifically, the jury found that Plaintiff was owed commissions of $12,493 on a December 1996 sale of equipment to Draw Leasing;. $35,000 on a June 1997 sale of equipment to Draw Leasing/Suburban Recycling; $50,200 on a May 1998 sale to Midwest Forestry; and $37,500 on a 1998 sale to Megacity. The jury further found that with respect to all but the 1996 sale to Draw Leasing, CBI intentionally failed to pay Henes the sales commissions.

Applying the Michigan Sales Representative Act’s “double commissions” provision for intentional failure to pay commissions to the Suburban Recycling, Midwest Forestry and Megacity sales, the Court entered a $257,493.00 Judgment in favor of Plaintiff and against Defendant as follows:

*724 Ct. 1: $12,493.00
Ct. 2: $70,000.00 (Suburban Recycling sale jury verdict of $35,000 x 2)
Ct. 3: $100,000.00 (applying the statutory double commissions cap to the Midwest Forestry sale)
Ct. 4: $75,000.00 (Megacity sale jury verdict of $37,500 x 2)

Following entry of the Judgment, Defendant CBI moved for a New Trial and Amendment of Judgment. Plaintiff Henes responded by filing its own Motion for Amendment of Judgment and a Motion for Attorney Fees. All of these Motions, in one way or another, present issues of applicability and interpretation of the Michigan Sales Representative Statute, M.C.L. § 600.2961.

A. THE MICHIGAN SALES REPRESENTATIVE STATUTE

M.C.L. § 600.2961 provides, in relevant part, as follows:

(1)As used in this section:
(a) “Commission” means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a percentage of the dollar amount of profits.
(b) “Person” means an individual, corporation, partnership, association, governmental entity, or any other legal entity.
(c) “Prevailing party” means a party who wins on all the allegations of the complaint or on all of the responses to the complaint.
(d) “Principal” means a person that does either of the following:
(i) Manufactures, produces, imports, sells, or distributes a product in this state.
(ii) Contracts with a sales representative to solicit orders for or sell a product in this state.
(e) “Sales representative” means a person who contracts with or is employed by a principal for the solicitation of orders or sale of goods and is paid, in whole or in part, by a commission. Sales representative does not include a person who places an order or sale for a product on his or her own account for resale by that representative.
(2) The terms of the contract between the principal and sales representative shall determine when a commission becomes due.
(3) If the time when the commission becomes due cannot be determined by a contract between the principal and sales representative, the past practices between the parties shall control or, if there are no past practices, the custom and usage prevalent in this state for the business that is the subject of the relationship between the parties.
(4) All commissions that are due at the time of termination of a contract between a sales representative and principal shall be paid within 45 days after the date of termination. Commissions that become due after the termination date shall be paid within 45 days after the date on which the commission became due.
(5) A principal who fails to comply with this section is liable to the sales representative for both of the following:
(a) Actual damages caused by the failure to pay the commissions when due.
(b) If the principal is found to have intentionally failed to pay the commission when due, an amount equal to 2 times the amount of commissions due but not paid as required by this section or $100,-000.00, whichever is less.
(6) If a sales representative brings a cause of action pursuant to this section, the court shall award to the prevailing party reasonable attorney fees and court costs.

B. THE PARTIES’ARGUMENTS

In its Motion for New Trial and Amendment of Judgment, Defendant CBI asserts three arguments. First, Defendant contends that the Michigan Sales Representative Act, M.C.L. § 600.2961 does not apply *725 at all to any of the commissions involved in this matter because none of the sales giving rise to the commissions sought by Plaintiff occurred within the State of Michigan.

Second, assuming that the statute applies to these commissions, Defendant contends that the Court erred in refusing to give the instruction it had proffered on “intentional failure to pay” commissions. Defendant’s last argument is that the $100,000 cap on double commissions provided in § 600.2961(5)(b) is a cap on doubling commissions in the aggregate, and not a per commission cap. Therefore, the Court’s $257,493 Judgment reflecting double commissions on the Suburban Recycling and Megacity sales and the application of the $100,000 capped double damages on the Midwest Forestry sale is erroneous.

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Cite This Page — Counsel Stack

Bluebook (online)
86 F. Supp. 2d 721, 2000 U.S. Dist. LEXIS 1499, 2000 WL 205420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-henes-special-projects-procurement-v-continental-biomass-mied-2000.