Miltimore Sales, Inc. v. International Rectifier, Inc.

119 F. App'x 697
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 29, 2004
Docket03-1314, 03-1317
StatusUnpublished
Cited by3 cases

This text of 119 F. App'x 697 (Miltimore Sales, Inc. v. International Rectifier, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miltimore Sales, Inc. v. International Rectifier, Inc., 119 F. App'x 697 (6th Cir. 2004).

Opinion

OPINION

MOORE, Circuit Judge.

The defendant, International Rectifier, Inc. (“IRI”), appeals an award of damages to the plaintiff, Miltimore Sales, Inc. (“MSI”), for breach of contract and violation of the Michigan Sales Representative Commission Act (“MSRCA”), Mich. Comp. Laws § 600.2961. On appeal IRI raises *699 various claims based on alleged trial errors and insufficiency of the evidence. MSI cross-appeals asserting that the damages judgment was inconsistent with the jury’s verdict. For the reasons stated below, we AFFIRM the judgment of the district court.

I. BACKGROUND

IRI is a corporation that supplies electrical components to the automotive industry. MSI provides sales representation within the automotive industry. On January 3, 1994, the two parties entered into a written contract under which MSI agreed to act as IRI’s exclusive sales agent in lower Michigan in exchange for an agreed upon sales commission. The written agreement specified that California law would govern its interpretation and that the agreement would last for two years unless renewed by IRI in writing thirty days prior to its expiration. IRI renewed the contract once, and thus it was set to expire on January 3,1998.

Prior to January 3,1998, the parties met to discuss terms for their continued contractual relations. Following negotiations, representatives of the two parties agreed that the sales commission paid to MSI would be reduced by forty percent and that in exchange IRI would pay MSI $2.5 million in compensation for past investment expenses. The parties also agreed to increase the length of time over which commissions could be paid. Instead of MSI’s right to commissions expiring 180 days after the termination of the relationship between IRI and MSI, as agreed upon in the original written contract, MSI would now be entitled to “life of the part” commissions. This meant that even after IRI terminated its relationship with MSI it would be obligated to pay commissions to MSI on the sales of parts to customers whose business as to those parts MSI had originally procured.

On January 22, 1999, IRI informed MSI that IRI was terminating their relationship and that IRI would pay commissions to MSI only under the terms of the now-expired written contract. In June 1999, MSI filed a complaint against IRI in district court alleging, inter aha, breach of contract and violation of the MSRCA. Following the trial, the jury returned a verdict in favor of MSI, finding that an oral contract between the parties had been formed which IRI breached by failing to pay MSI for investment expenses and “life of the part” commissions. The jury also found that IRI violated the MSRCA by intentionally failing to pay these commissions. IRI then filed a timely appeal, and MSI filed a timely cross-appeal.

II. ANALYSIS

A. IRI’s Claims on Appeal

IRI presents numerous arguments on appeal but asserts two general claims: first, that it is entitled to a new trial as a result of trial error committed by the district court; and second, that there was insufficient evidence for the jury to find that IRI breached its contract with MSI or violated the MSRCA.

1. Claim That District Corut Made Legal and Evidentiary Errors

IRI contends that the district court made various legal and evidentiary errors for which it is entitled to relief, including that the district court erred: (1) in applying Michigan law to the case instead of California law; (2) in ruling that the contract claim was not barred by the statute of frauds; (3) in its instructions to the jury on contract law; and (4) in precluding IRI from using MSI’s First Amended Complaint to impeach MSI witnesses, along *700 with various other evidentiary rulings. None of these claims, however, warrant reversal of the district court’s decision.

First, the district court was correct in ruling that Michigan law governs the present suit. A federal court sitting in diversity applies the choice of law rules of the forum state. Cole v. Mileti, 133 F.3d 433, 437 (6th Cir.), cert. denied, 525 U.S. 810, 119 S.Ct. 42, 142 L.Ed.2d 32 (1998). While Michigan permits contractual choice of law provisions, the written contract specifying California law as governing expired on January 3, 1998. Therefore, the district court properly determined that Michigan law applied in this case.

Second, MSI’s contract claim is not barred by the statute of frauds. The statute of frauds only requires that all contract modifications which lack consideration be in writing and bars oral agreements that cannot be performed within one year. Mich. Comp. Laws § 566.1; § 566.132(1)(a). The parties’ oral agreement was not a modification of the written contract. It was a separate agreement that took effect after the written contract expired. The oral contract also lacked a completion date and thus does not implicate the statute of frauds’ bar against oral agreements longer than one year. See Rowe v. Montgomery Ward & Co., 437 Mich. 627, 473 N.W.2d 268, 271 (1991) (“oral contracts for an indefinite term ... fall outside the statute of frauds”).

Third, the district court properly instructed the jury as to the need for an expression of consent and consideration for the formation of a contract. The district court’s jury instructions did not misstate Michigan law and thus do not qualify as “confusing, misleading and prejudicial” in a manner that would lead this court to reverse the judgment. United States v. Wells, 211 F.3d 988, 1002 (6th Cir.2000).

Fourth, the district court did not abuse its discretion in declining to allow IRI to use MSI’s First Amended Complaint to impeach MSI witnesses. See Hancock v. Dodson, 958 F.2d 1367, 1371 (6th Cir.1992) (noting that this court reviews evidentiary determinations for abuse of discretion). This is particularly true because the record indicates that the court allowed IRI to use the complaint to bolster one of its witnesses’ testimony and impeach MSI’s financial expert. IRI’s argument that the district court erred in permitting various MSI witnesses to testify and in permitting MSI to impeach an IRI witness using prior inconsistent statements similarly must fail. None of the district court’s evidentiary rulings raised by IRI on appeal represent an abuse of the court’s discretion. Therefore, IRI is not entitled to a new trial or remittitur.

2. Claims That Jury Verdict was Based on Insufficient Evidence or Against the Weight of the Evidence

IRI’s appeal raises various claims relating to the sufficiency of the evidence, including: (1) that there was insufficient evidence to support a breach of contract claim; (2) that there was insufficient evidence upon which a jury could find that IRI violated the MSRCA; and (3) that the jury’s award to MSI of damages for past investments and “life of the part” commissions was against the great weight of the evidence.

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119 F. App'x 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miltimore-sales-inc-v-international-rectifier-inc-ca6-2004.