Uniek, Inc. v. Dollar General Corp.

500 F. Supp. 2d 1158, 2007 U.S. Dist. LEXIS 44803, 2007 WL 1795505
Procedural entryThis page is a short order in Uniek, Inc. v. Dollar General Corp.. Read the opinion of the Court — 474 F. Supp. 2d 1034
District Court, W.D. Wisconsin·Decided June 18, 2007·No. 06-C-311-C·Published

Opinion

OPINION AND ORDER

CRABB, District Judge.

For a number of years, defendant Dollar General Corporation sold in its stores picture frames it had purchased from plaintiff Uniek, Inc. When defendant decided to go with another supplier after plaintiff had ordered and manufactured millions of dollars worth of frames for defendant, plaintiff brought this case, asserting claims for breach of contract, promissory estoppel, quantum meruit and a violation of Wis. Stat. § 100.18. The parties are of diverse citizenship and the amount in controversy is greater than $75,000, making the exercise of jurisdiction appropriate under 28 U.S.C. § 1332.

Defendant filed a motion for partial summary judgment with respect to plaintiffs statutory claim, which I granted. Uniek, Inc. v. Dollar General Corp., 474 F.Supp.2d 1034 (W.D.Wis.2007). Now the parties have filed cross motions for summary judgment. (Although defendant labels its motion as one for summary judgment, it is actually another motion for partial summary judgment because defendant has not sought dismissal of plaintiffs promissory estoppel claim.)

Because I agree with defendant that plaintiff has not adduced sufficient evidence to require a trial on its claims for breach of contract and quantum meruit, I will grant defendant’s motion for partial summary judgment. Further, because plaintiff has failed to show that no reasonable jury could find in favor of defendant on plaintiffs promissory estoppel claim, I will deny plaintiffs motion for summary judgment.

From the parties’ proposed findings of fact and the record, I find the following facts to be undisputed.

UNDISPUTED FACTS

Plaintiff Uniek, Inc. manufactures, distributes and supplies picture frames to high volume retailers located in North America. Defendant Dollar General Corporation operates more than 8,000 convenience stores across the country. Plaintiffs state of incorporation and the location of *1161 its principal place of business is Wisconsin; defendant’s are Tennessee.

Between 2000 and 2004, defendant purchased picture frames from seven or eight different vendors, one of which was plaintiff. In late 2004, defendant’s divisional merchandise manager, Cindy Mazza, informed plaintiff that defendant was searching for an exclusive vendor and wanted each of its current vendors to propose its “vision” for defendant’s 2005 “pla-nogram,” which would run from May 16, 2005 through May 15, 2006. A planogram is “a diagram of fixtures and products that illustrates how and where retail products should be displayed, usually on a store shelf in order to increase customer purchases”; it assigns a “specific amount of space ... to specific items in the store.” Plaintiff made a presentation to defendant, after which defendant’s picture frame buyers told plaintiff that it would be defendant’s exclusive domestic picture frame supplier in 2005.

In January 2005, plaintiff and defendant “worked on” a sales forecast for the 2005 retail year. The same month, John Kuy-pers (plaintiffs senior vice president of sales), Nanette Bolek (one of defendant’s buyers), Kevin Easton (defendant’s vice president of merchandising, home and apparel) and Cindy Mazza (defendant’s divisional merchandise manager) signed a document titled “Uniek/Dollar General 2005 Planogram Agreement Letter of Understanding,” which was drafted by plaintiff. In addition, the document was “approved” by defendant’s president of merchandising and supply chain.

The document includes the following language:

Uniek Inc. will supply Dollar General an 8 ft planogram to roll out [at] the end of April 2005 to approximately 7,340 stores and all seven DC’s. The program will begin as a domestic program distributed from Uniek’s warehouses in Waunakee, WI. The change to a direct import program will be determined by Uniek and Dollar General following setting all stores with the 2005 planogram.
Uniek agrees to pay for the fixtures upon receiving completed exclusivity to the in line planogram for 12 months based on service performance and product satisfaction with the exception of Dollar General’s direct import program consisting of clear acrylic and bent metal frames.
In the event that an item is discontinued, Uniek and Dollar General will work together to liquidate this merchandise on store leve[l] to avoid excess inventory. Uniek is to only carry 30 days of merchandise on hand to supply Dollar General at all times.

The 2005 agreement/letter of understanding was not approved by defendant’s in-house legal department either before or after defendant’s employees signed the document.

The “change to a direct import program” referred to in the 2005 agreement/letter of understanding never occurred. Rather, all the picture frames were stored in Wisconsin at plaintiffs warehouses, where defendant retrieved them and distributed them to its stores.

Throughout the 2005 “planogram year,” (May 2005-May 2006), defendant continuously issued electronic purchase orders to plaintiff and plaintiff shipped the product according to these purchase orders. Plaintiff imported 75-80% of its product for defendant from overseas and manufactured 20-25% of this product in Wisconsin.

In 2005, plaintiff was defendant’s sole picture frame supplier; plaintiffs sales to defendant exceeded $12 million. (The parties are not clear whether they are refer *1162 ring to the 2005 calendar year or the 2005 “planogram year.”)

At the end of calendar year 2005, plaintiff and defendant began discussing defendant’s picture frame needs for 2006. At a meeting in December 2005, Bolek told plaintiff that defendant wished to continue using plaintiff as the exclusive picture frames supplier for the 2006 retail year. Defendant’s vice president decided at the end of 2005 that “Uniek would go forward with some changes to the planogram, minimal changes.”

On December 7, 2005, defendant notified plaintiff that it was discontinuing 17 models of picture frames. From December 2005 through June 2006, defendant ordered a total of 514,108 of the discontinued models.

At the end of December 2005, plaintiff produced and disclosed to defendant its sales forecasts for the amount of plaintiffs products it believed defendant would sell from February 2006 to January 2007, totaling approximately $27,000,000. As with the forecasts for the 2005 Planogram, these forecasts included quantity and price projections for the 2006 Planogram.

Melissa Smith was defendant’s associate customer service representative and a buyer who handled much day-today contact with plaintiff until her April 2006 resignation. On January 20, 2006, she wrote an email to plaintiff, stating: “We have reviewed our DG inventory and believe we will take the entire quantity that you have on Roma 4x6. Charleston Chestnut 4x6 & 5x7. We will also take an approximate 14 week supply on the others. You will need to be ready to ship the new Gold and Charleston Black to arrive in our DC’s by 4/15/06.”

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

Uniek, Inc. v. Dollar General Corp., 500 F. Supp. 2d 1158, 2007 U.S. Dist. LEXIS 44803, 2007 WL 1795505 (W.D. Wis. 2007).

500 F. Supp. 2d 1158 (Uniek, Inc. v. Dollar General Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Carnes Company v. Stone Creek Mechanical, Incorporated
412 F.3d 845 (Seventh Circuit, 2005)
Tempelis v. Aetna Casualty & Surety Co.
485 N.W.2d 217 (Wisconsin Supreme Court, 1992)
Ramsey v. Ellis
484 N.W.2d 331 (Wisconsin Supreme Court, 1992)
State Farm Mutual Automobile Insurance v. Gillette
2002 WI 31 (Wisconsin Supreme Court, 2002)
Metropolitan Ventures, LLC v. GEA Associates
2006 WI 71 (Wisconsin Supreme Court, 2006)
Theuerkauf v. Sutton
306 N.W.2d 651 (Wisconsin Supreme Court, 1981)
Seater Construction Co. v. Rawson Plumbing, Inc.
2000 WI App 232 (Court of Appeals of Wisconsin, 2000)
U.S. Oil Co. v. Midwest Auto Care Services, Inc.
440 N.W.2d 825 (Court of Appeals of Wisconsin, 1989)
Hoffman v. Red Owl Stores, Inc.
133 N.W.2d 267 (Wisconsin Supreme Court, 1965)
Management Computer Services, Inc. v. Hawkins, Ash, Baptie & Co.
557 N.W.2d 67 (Wisconsin Supreme Court, 1996)
Uniek, Inc. v. Dollar General Corp.
474 F. Supp. 2d 1034 (W.D. Wisconsin, 2007)