Northland Sales, Inc. v. Maax Corp.

556 F. Supp. 2d 928, 2008 U.S. Dist. LEXIS 26073, 2008 WL 906220
CourtDistrict Court, E.D. Wisconsin
DecidedMarch 31, 2008
Docket05-C-0453
StatusPublished

This text of 556 F. Supp. 2d 928 (Northland Sales, Inc. v. Maax Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northland Sales, Inc. v. Maax Corp., 556 F. Supp. 2d 928, 2008 U.S. Dist. LEXIS 26073, 2008 WL 906220 (E.D. Wis. 2008).

Opinion

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT (DOC. # 29) AND DENYING PLAINTIFF’S MOTION TO SUPPLEMENT AFFIDAVITS OR IN THE ALTERNATIVE GRANTING LEAVE TO TAKE FURTHER DEPOSITIONS (DOC. # 51)

C.N. CLEVERT, JR., District Judge.

Defendant, Maax Corporation (Maax), a Canadian corporation, sells and distributes bathtub and whirlpool products throughout the United States. Northland Sales, Inc. (Northland), a Wisconsin corporation, was a manufacturer’s representative for Maax and its predecessor Aker Plastics. (PPFOF ¶ 1.) After a nearly twenty-five-year business relationship between North-land representatives and Maax/Aker, Maax terminated Northland as its representative. Northland then brought suit in Waukesha County Circuit Court alleging that Maax violated provisions of the Wisconsin Fair Dealership Law, Wis. Stat. ch. 135, and seeking rescission of a 2003 Agreement between Northland and Maax. Maax removed the action to this court based on diversity of the parties pursuant to 28 U.S.C. §§ 1332 and 1441(a). Maax’ Motion for Summary Judgment, and Northland’s Motion to Supplement Affidavits in Opposition to Defendant’s Motion for Summary Judgment are now before the court.

STANDARD OF REVIEW

Summary judgment is proper if the pleadings, depositions, answers to inter *930 rogatories, and admissions on file, together with any affidavits, show that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party has the initial burden of demonstrating that it is entitled to summary judgment. Id. at 323, 106 S.Ct. 2548. Once this burden is met, the non-moving party must designate specific facts to support or defend its case. Id. at 322-24, 106 S.Ct. 2548.

In analyzing whether a question of fact exists, the court construes the evidence in the light most favorable to the party opposing the motion. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The mere

existence of some factual dispute does not defeat a summary judgment motion, however; there must be a genuine issue of material fact for the case to survive. Id. at 247-48,106 S.Ct. 2505.

“Material” means that the factual dispute must be outcome-determinative under governing law. Contreras v. City of Chi., 119 F.3d 1286, 1291 (7th Cir.1997). Failure to support any essential element of a claim renders all other facts immaterial. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. A “genuine” issue of material fact requires specific and sufficient evidence that, if believed by a jury, would actually support a verdict in the nonmovant’s favor. Fed.R.Civ.P. 56(e); Anderson, 477 U.S. at 249, 106 S.Ct. 2505. Where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, there is no genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

BACKGROUND

Northland, a Wisconsin Corporation with its principal place of business in New Berlin, Wisconsin, acts as a representative for over thirty manufacturers producing an array of products, including faucets, whirlpools, sump pumps, septic tanks, drains, grease traps, pipes, toilets. (DPFOF ¶ 4; PL’s Resp. to DPFOF ¶ 4; Rinehart Aff. Ex. J.) 1 Northland’s president is Gerald Mellone; his two sons, Stephen and Jeffery Mellone, are full-time employees. (PPFOF ¶ 10; G. Mellone Dep. 9.) Prior to the relationship with Gerald Mellone, Aker had no significant distribution system in Wisconsin. (PPFOF ¶¶ 2, 4, 8.)

Mellone and Aker started their business relationship in 1988. Northland was incorporated in 1994, and pursuant to an oral agreement between Mellone and Aker, Northland became a manufacturer’s representative for Aker Plastics commencing in 1988. (DPFOF ¶ 9; Pl.’s Resp. ¶9; G. Mellone Dep. 17-18, 28; S. Mellone Dep. 7.) The agreement provided that North-land would not sell products that competed with Aker, but it would sell other manufacturers plumbing products that complimented Aker’s product line. (PPFOF ¶ 9.) As a manufacturer’s representative, Northland would contact and solicit orders from wholesalers who would then buy products directly from Aker, take title, inventory the products, and then resell them to consumers. (G. Mellone Dep. 110-11.) Products would be sent by Aker to the wholesaler. (G. Mellone Dep. 111.) Northland then earns a commission on the Aker prod *931 ucts that are bought by wholesalers. (G. Mellone Dep. 111-13.)

On occasion, Northland would inform wholesalers how to look for damage on Maax/Aker products when they would be dropped off by Maax/Aker delivery trucks. Relatedly, in an attempt to help the wholesaler distinguish damaged units from non-damaged units, Northland would visit wholesalers who were rejecting a shipment due to damage. (G. Mellone Dep. 137-39). On an “emergency basis,” occasionally Northland would hold Maax/Aker products for short periods for a customer to pick up. (Id. at 243.) If a product was damaged and had to be “back ordered” by a wholesaler, periodically Mellone would use his trailer to pick up a unit from one place and deliver it as needed. (Id. at 146^47.)

Often, Northland would get calls for repair work. When a call would come in, it was typical for a Northland representative to ask questions about the product and then forward it to Aker for repair. Independent companies in the region were authorized and paid by Maax to do repairs on Maax products; Northland was not one of them. (Id. at 262-64.) However, if a problem was minor, a Northland representative may go out and inspect the product to see if he or she could fix it. (Id. at 258-59.) On occasion, Maax would ask North-land if it could either send one of its representatives or get a third party to work on a problem if a Maax representative was unavailable. (Id. at 260, 265.) Northland “did this on a gratis basis.” (Id. at 260.) For promotional purposes, Northland maintained displays of Aker products to show to customers and to take to trade shows; however, Northland did not otherwise inventory Aker products. (Id. at 119-20.)

In October 2002, Maax, a foreign corporation with its principal place of business in Montreal, Quebec, Canada, (Joint Pretrial Rep. 1), purchased Aker Plastics and its Aker brand of bathtub products.

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Bluebook (online)
556 F. Supp. 2d 928, 2008 U.S. Dist. LEXIS 26073, 2008 WL 906220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northland-sales-inc-v-maax-corp-wied-2008.