Wingert & Associates, Inc. v. Paramount Apparel International, Inc., Wingert & Associates, Inc. v. Paramount Apparel International, Inc.

458 F.3d 740, 70 Fed. R. Serv. 1018, 2006 U.S. App. LEXIS 20721, 2006 WL 2336336
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 14, 2006
Docket05-4259, 05-4387
StatusPublished
Cited by16 cases

This text of 458 F.3d 740 (Wingert & Associates, Inc. v. Paramount Apparel International, Inc., Wingert & Associates, Inc. v. Paramount Apparel International, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wingert & Associates, Inc. v. Paramount Apparel International, Inc., Wingert & Associates, Inc. v. Paramount Apparel International, Inc., 458 F.3d 740, 70 Fed. R. Serv. 1018, 2006 U.S. App. LEXIS 20721, 2006 WL 2336336 (8th Cir. 2006).

Opinions

[742]*742MURPHY, Circuit Judge.

After Wingert & Associates, Inc. (Wingert) was terminated by Paramount International, Inc. (Paramount), Wingert brought this action for unjust enrichment, tortious interference with contract, and violation of the Minnesota Termination of Sales Representatives Act. The district court1 dismissed the common law claims on summary judgment and held a jury trial on the statutory claim. The jury returned a verdict in favor of Wingert in the amount of $1,049,894, and the district court denied Paramount’s motion for judgment notwithstanding the verdict, to vacate and amend the judgment, or for a new trial. Paramount appeals, and Wingert cross appeals the dismissal of its unjust enrichment claim. We affirm.

Wingert, a sales representative organization domiciled in Minnesota, entered into a verbal agreement in 1995 to be a sales representative for Paramount, a Missouri corporation which manufactures apparel and headwear. Under their agreement Wingert solicited wholesale orders for Paramount’s golf headwear line, and Paramount payed Wingert a fifteen percent commission on the sales. The duration of the agreement was not specified. Wingert employed its own sales force, which consisted of at least twenty agents who received a ten percent commission on their sales, i.e. two thirds of the contract commission.

On December 13, 2002 Paramount sent Wingert a letter terminating the relationship effective December 16, 2002, but indicating it would pay commissions on sales through January 16, 2003. Paramount subsequently contacted eighteen of the agents working for Wingert and contracted directly with them for a twelve percent commission.

The Minnesota Termination of Sales Representatives Act provides that a sales representative agreement of indefinite duration “shall be treated as if it were for a definite duration expiring 180 days after the giving of written notice” of termination. Minn.Stat. § 325E.37, subd. 3. When the agreement is terminated, the sales representative is “entitled to be paid for all sales as to which [it] would have been entitled to commissions pursuant to the provisions of the sales representative agreement, made prior to the ... end of the notification period.” Minn.Stat. § 325E.37, subd. 4. Thus, a representative terminated without 180 days notice is entitled to commissions earned within 180 days of the termination. The statute also separately provides for an award of damages without a time limitation. See § 325E.37, subd. 5.

Wingert brought this diversity action against Paramount, asserting that Paramount’s failure to give 180 days notice violated the Act and then amended its complaint to add claims of tortious interference with contract and unjust enrichment based on Paramount’s hiring of its agents. Paramount filed an answer and an amended answer and later moved for summary judgment on the common law claims and for limiting Wingert’s statutory claim for recovery to net commissions (five percent of sales) for the 180 days after its written notice of termination. The district court granted summary judgment on the non statutory claims but refused to limit the commissions.

One week before trial Paramount moved to amend its answer to include a defense based on Wingert’s failure to enforce non-compete clauses against its agents. The district court denied the motion as untime[743]*743ly, but indicated that Paramount would be allowed to cross examine Wingert about its failure to mitigate. It granted Wingert’s motion in limine to exclude evidence of the noncompete agreements, including evidence of prior litigation to enforce such an agreement. Wingert’s motion to exclude evidence of settlement negotiations was also granted. Despite Wingert’s failure to include in its cause of action a request for damages beyond the statutory period, the district court decided to allow limited testimony about lost profits beyond that six month period.

At trial Wingert introduced expert testimony from accountant Arthur Cobb concerning its damages. Cobb testified that the amount of Wingert’s lost commissions during the 180 day period following Paramount’s notice was approximately $228,366. He also testified over Paramount’s objection that Wingert’s lost profits for the next four and a half year period were approximately $821,000. Cobb explained that because Wingert had not received 180 days notice, it did not have sufficient agents to serve a new replacement line and could not arrange for replacements. During Cobb’s testimony Wingert introduced a document that contained booking information on Paramount’s headwear line. Paramount objected that it was a settlement document, but the court admitted it after redaction of a reference to settlement. Paramount unsuccessfully sought to introduce Cobb’s expert report, but was able to question him about it.

Before closing arguments, Paramount requested judgment as a matter of law on the issue of damages beyond the 180 day notice period and based on insufficiency of the evidence of lost commissions. The motion was denied, and the jury found in favor of Wingert and awarded damages of $228,366 for failure to provide 180 days notice and $821,518 for damages beyond the 180 day period. Paramount filed a post trial motion requesting judgment in its favor on damages outside the 180 day period and asking the district court to vacate and amend the judgment on commissions during the 180 day period. In the alternative it requested a new trial. The district court denied the motion, and Paramount appeals, challenging the damages awarded and several evidentiary rulings. Wingert cross appealed the grant of summary judgment on its common law claims but has since limited its focus to the dismissal of its unjust enrichment claim.

On its appeal Paramount challenges both damage awards. It argues that the award for lost commissions during the statutory notice period should have been limited to Wingert’s net loss of only five percent commissions (since the agents would have received ten percent). Judgment notwithstanding the verdict should have been granted for any damages beyond the 180 day notice period it claims because they are not authorized by the Act. In the alternative, Paramount requests a new trial so that it may introduce additional evidence. We review the district court’s rulings under Rule 59(e) for abuse of discretion, Mathenia v. Delo, 99 F.3d 1476, 1480 (8th Cir.1996), and the denial of judgment as a matter of law de novo. Keenan v. Computer Assocs. Int’l, Inc., 13 F.3d 1266, 1268 (8th Cir.1994). We review questions of statutory interpretation de novo. Crane v. Sullivan, 993 F.2d 1335, 1336 (8th Cir.1993).

The Act provides that the payment for sales during the 180 day notice period shall be “in accordance with the terms of the sales representative agreement”. See Minn.Stat. § 325E.37, subd. 4. The agreement between Paramount and Wingert was for commissions of fifteen percent; under the language of the statute, Wingert is entitled to the full amount of those commissions. The district court did not abuse its discretion in overruling Para[744]*744mount’s objection to evidence regarding the gross commissions lost or in denying the motion to amend the judgment.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
458 F.3d 740, 70 Fed. R. Serv. 1018, 2006 U.S. App. LEXIS 20721, 2006 WL 2336336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wingert-associates-inc-v-paramount-apparel-international-inc-ca8-2006.