PMT Mach. Sales, Inc. v. Yama Seiki USA, Inc.

353 F. Supp. 3d 760
CourtDistrict Court, E.D. Wisconsin
DecidedNovember 2, 2018
DocketCase No. 17-CV-1731-JPS
StatusPublished

This text of 353 F. Supp. 3d 760 (PMT Mach. Sales, Inc. v. Yama Seiki USA, Inc.) 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
PMT Mach. Sales, Inc. v. Yama Seiki USA, Inc., 353 F. Supp. 3d 760 (E.D. Wis. 2018).

Opinion

J.P. Stadtmueller, U.S. District Judge

1. INTRODUCTION

Yama Seiki USA, Inc. ("Yama Seiki"), the defendant, is a manufacturer of machine tools and machining centers, and PMT Machinery Sales, Inc. ("PMT"), the plaintiff, sells those products in eastern Wisconsin. PMT filed this action in Milwaukee County Circuit Court alleging that Yama Seiki violated the Wisconsin Fair Dealership Law ("WFDL"), Wis. Stat. § 135.01 et seq. , when it terminated PMT's status as its exclusive dealer in eastern Wisconsin. See (Docket # 1-1).

*762Yama Seiki removed the action to this Court on the basis of the Court's diversity jurisdiction under 28 U.S.C. § 1332(a)(1). (Docket # 1 at 2). Yama Seiki subsequently moved for summary judgment, and that motion is now fully briefed and ripe for adjudication. (Docket # 23). For the reasons explained below, the motion will be granted and this case will be dismissed.

2. STANDARD OF REVIEW

Federal Rule of Civil Procedure 56 states that the "court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a) ; see Boss v. Castro , 816 F.3d 910, 916 (7th Cir. 2016). "Material facts" are those facts which "might affect the outcome of the suit," and "summary judgment will not lie if the dispute about a material fact is 'genuine,' that is, if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Thus, to demonstrate a genuine dispute about a material fact, a party opposing summary judgment "must do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita Elec. Indus. Co. v. Zenith Radio Corp. , 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Rather, the non-moving party "must set forth specific facts showing that there is a genuine issue for trial." Fed. R. Civ. P. 56(e). The Court construes all facts and reasonable inferences in a light most favorable to the non-movant. Bridge v. New Holland Logansport, Inc. , 815 F.3d 356, 360 (7th Cir. 2016). In assessing the parties' proposed facts, the Court must not weigh the evidence or determine witness credibility; the Seventh Circuit instructs that "we leave those tasks to factfinders." Berry v. Chicago Transit Auth. , 618 F.3d 688, 691 (7th Cir. 2010).

3. RELEVANT FACTS

Consistent with the standard of review, the following facts are taken from the evidence when viewed in a light most favorable to PMT.

3.1 Incorporation of PMT

Yama Seiki is a California corporation that manufactures machine tools and machining centers. PMT is a Wisconsin corporation located in Franklin, Wisconsin. PMT's principal, Kenneth Schertz ("Schertz"), incorporated a company called Precision Automation, Inc. in or around 1997 as an independent machine tool repair and service business. Schertz changed the corporate name in 2001 to Precision Machine Tool Corporation ("Precision") and added machinery sales to its offerings.

The first product line Precision added was Yama Seiki. There was no written agreement between Precision and Yama Seiki in 2001 to confirm Precision's sale of the Yama Seiki line; rather, it was simply a handshake deal. Precision sold Yama Seiki machines on a profit-for-sale basis, meaning that Precision would cultivate the customer, quote the machine to the customer, pay a dealer price to Yama Seiki for the machine, and keep as its profit the difference between the dealer price and the purchase price negotiated with the customer. Precision lost the Yama Seiki product line in 2008 when Yama Seiki assigned its Wisconsin sales to a different company, Progressive Machinery, Inc. ("Progressive").

In late 2015, Progressive lost the Yama Seiki product line. David Reesman ("Reesman"), who worked for Progressive, approached Schertz about forming a company to sell Yama Seiki machines, and Schertz agreed. In October 2015, Schertz *763incorporated PMT with a $20,000.00 start-up loan from Precision; PMT was incorporated separately from Precision so as to not put Precision at risk in the event selling Yama Seiki machines did not work out. Reesman became an employee of PMT and dedicated 90% of his time to the sale of Yama Seiki products.

3.2 Relationship Between PMT and Yama Seiki

Prior to the formation of PMT, Reesman discussed with Clive Wang ("Wang"), the general manager of Yama Seiki's Goodway division, the possibility of a newly-formed PMT selling the Yama Seiki line. Reesman then teamed up with Schertz to form PMT, and during that time Reesman's conversations with Wang continued.

After PMT was formed, Reesman asked Wang to grant an exclusive dealership to PMT. The parties disagree as to whether Wang verbally committed to giving PMT exclusive status starting at that time, which was around October or November 2015; Reesman and Schertz aver that Wang so promised, but Wang avers that he made no promise of exclusivity prior to December 2015. See

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
John Maye Company, Inc. v. Nordson Corporation
959 F.2d 1402 (Seventh Circuit, 1992)
Frieburg Farm Equipment, Inc. v. Van Dale, Inc.
978 F.2d 395 (Seventh Circuit, 1992)
Rakowski Distributing, Inc. v. Marigold Foods, Inc.
193 F.3d 504 (Seventh Circuit, 1999)
Timothy J. Van Groll v. Land O' Lakes, Inc.
310 F.3d 566 (Seventh Circuit, 2002)
Springer v. Durflinger
518 F.3d 479 (Seventh Circuit, 2008)
E. A. Dickinson & Associates, Inc. v. Simpson Electric Co.
509 F. Supp. 1241 (E.D. Wisconsin, 1981)
Foerster, Inc. v. Atlas Metal Parts Co.
313 N.W.2d 60 (Wisconsin Supreme Court, 1981)
Kealey Pharmacy & Home Care Service, Inc. v. Walgreen Co.
607 F. Supp. 155 (W.D. Wisconsin, 1984)
Berry v. Chicago Transit Authority
618 F.3d 688 (Seventh Circuit, 2010)
William Bridge v. New Holland Logansport, Incorp
815 F.3d 356 (Seventh Circuit, 2016)
Thomas F. Benson v. City of Madison
2017 WI 65 (Wisconsin Supreme Court, 2017)
Boss v. Castro
816 F.3d 910 (Seventh Circuit, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
353 F. Supp. 3d 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pmt-mach-sales-inc-v-yama-seiki-usa-inc-wied-2018.