K&S Tool & Die Corp. v. Perfection MacHinery Sales, Inc.

2006 WI App 148, 720 N.W.2d 507, 295 Wis. 2d 298, 2006 Wisc. App. LEXIS 552
CourtCourt of Appeals of Wisconsin
DecidedJune 22, 2006
Docket2005AP2148
StatusPublished
Cited by13 cases

This text of 2006 WI App 148 (K&S Tool & Die Corp. v. Perfection MacHinery Sales, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin 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 Corp. v. Perfection MacHinery Sales, Inc., 2006 WI App 148, 720 N.W.2d 507, 295 Wis. 2d 298, 2006 Wisc. App. LEXIS 552 (Wis. Ct. App. 2006).

Opinion

VERGERONT, J.

¶ 1. K&S Tool & Die Corporation claims that Perfection Machinery Sales, Inc. violated Wis. Stat. § 100.18, 1 "Fraudulent representations," by selling to K&S an 800-ton press that Perfection represented was a 1000-ton press. The jury agreed, finding that Perfection violated § 100.18 and that the violation caused K&S pecuniary loss in the amount of $306,000. Perfection appeals the judgment entered on the verdict, contending: (1) as a matter of law, K&S was not a member of "the public" within the meaning of § 100.18; (2) the circuit court erroneously instructed the jury on the meaning of "the public"; and (3) the evidence is insufficient to support the jury's finding that Perfection's untrue representation caused K&S pecuniary loss.

¶ 2. We conclude as follows: (1) Perfection was not entitled to a ruling as a matter of law — either at the close of K&S's evidence or at the close of all evidence— that K&S was not a member of "the public" under Wis. Stat. § 100.18; (2) the circuit court did not erroneously exercise its discretion in instructing the jury on the meaning of "the public"; and (3) there is sufficient *303 evidence to support the jury's findings that Perfection's untrue representation caused K&S to enter into the transaction with Perfection and that K&S suffered monetary loss as a result of a violation of § 100.18. Accordingly, we affirm the judgment.

BACKGROUND

¶ 3. K&S is a Wisconsin corporation with sixty-nine employees that creates metal parts and dies. Production stamping is one process K&S uses to create metal parts. This process uses a punch press and a die to stamp either flat or coiled pieces of steel into metal parts. In 2000, Thomas Klusken, the sole owner of K&S, determined that K&S could not profitably make a metal part for a customer with the press it had and needed a press with a 1000-ton pressing force. K&S began searching through brochures it had been sent from companies that sold used presses, but was unable to find what it needed.

¶ 4. Perfection was one of the companies that had sent K&S brochures and catalogs. Perfection is an Illinois corporation in the business of selling used industrial machinery to commercial clients nationwide. It has its own inventory of machines but will sometimes look for a machine a customer needs that is not in its inventory.

¶ 5. Klusken contacted Perfection and spoke to Jason Broderick, a sales representative, telling him that K&S needed a 1000-ton press with certain features. Perfection did not have in its inventory a 1000-ton press with all the features K&S was looking for and Broderick agreed to look around to see if he could find one. Broderick subsequently called Klusken to say that he had found two 1000-ton presses in Michigan. On May 24, 2000, Broderick sent Klusken a fax on Perfection letterhead beginning with the form language *304 "Gentlemen: We are pleased to offer for your consideration . . followed by "TWO (2) 1000 TON CLEARING STRAIGHT SIDE PRESSES," and the model and serial numbers of the two presses. This document gave numerical data on various features and functions of the presses and listed the price for each press, followed by the statement "Each As Is Loaded." Below the price appeared this sentence: "SPECIFICATIONS ARE APPROXIMATE ONLY, INTENDED SOLELY AS A GUIDE AND ARE NOT BINDING."

¶ 6. K&S hired another company, Industrial Rebuilding Machining, Inc., to go to Michigan to inspect the presses, both of which were in a dismantled state. Industrial Rebuilding recommended one as the better press to rebuild, and K&S told Perfection it wanted to purchase that press. Perfection sold that press to K&S. Industrial Rebuilding rebuilt the press in its own shop, then installed it at K&S's plant. However, when K&S began using the press for the intended project, the press did not make the metal part in one hit, as K&S anticipated a 1000-ton press would. After unsuccessful efforts by K&S to make adjustments to the press, K&S called the press's manufacturer and learned that the press was actually an 800-ton press. K&S continued to use the press to produce the part for the customer, but three hits were needed to successfully produce the part.

¶ 7. K&S filed a complaint against Perfection, 2 asserting a number of claims. However, the Wis. Stat. § 100.18 claim was the only claim that went to trial. 3

*305 ¶ 8. As part of K&S's case, Klusken testified that prior to contacting Perfection about a 1000-ton press, K&S had regularly received catalogs and brochures from Perfection advertising the machines it had for sale, and K&S had contacted Perfection a number of times in the past to inquire about its machines and ask for quotes. K&S had previously purchased one piece of machinery from Perfection in 1996. Klusken called Perfection about a 1000-ton press because he had dealt with Perfection before and knew it was a major dealer.

¶ 9. After the close of K&S's evidence, Perfection moved to dismiss on two grounds. First, it argued that there was no evidence that the May 24, 2000 fax caused K&S to buy the press, because K&S had hired Industrial Rebuilding and relied on its inspection. The court denied this motion, concluding that, based on the evidence presented by K&S, the issue of causation was a jury question. Second, Perfection argued that the evidence showed that K&S and Perfection had a preexisting relationship and therefore K&S was not a member of "the public" under Wis. Stat. § 100.18. The circuit court took this issue under advisement. It explained that its tentative conclusion was that the question whether K&S was a member of "the public" under § 100.18 was a question of law, but it intended to ask the jury this question so the parties "have that protection." When Perfection renewed these motions at the close of its evidence, the court made the same rulings.

¶ 10. The special verdict given to the jury asked the following questions:

1. Was [K&S] a member of the "public" under § 100.18 of the Wisconsin Statutes?
2. Regardless of whether or not K&S was a member of the public, [d]id Perfection Machinery Sales, Inc. violate § 100.18 of the Wisconsin Statutes? *306 Only if you answered Question #2 'Yes", answer Question #3.
3. Did the untrue representation cause [K&S] to enter a transaction with Perfection Machinery Sales, Inc.?
Regardless of how you answered Questions 1-3, answer Question #4.
4.

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Bluebook (online)
2006 WI App 148, 720 N.W.2d 507, 295 Wis. 2d 298, 2006 Wisc. App. LEXIS 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ks-tool-die-corp-v-perfection-machinery-sales-inc-wisctapp-2006.