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N. Grp., Inc. v. Tech 4 Kids Inc.

Citation: 352 F. Supp. 3d 882Docket: Case No. 17-C-1367

Court: District Court, E.D. Wisconsin; October 10, 2018; Federal District Court

Narrative Opinion Summary

In this case, Northern Group, Inc., a Wisconsin corporation, filed a lawsuit against Tech 4 Kids, Inc. (T4K), a Canadian corporation, alleging breach of an oral agreement for commissions related to sales and marketing services. Northern Group claims entitlement to post-termination commissions under an oral agreement from 2008, asserting breach of contract, breach of the duty of good faith and fair dealing, unjust enrichment, and violations of Wisconsin's commission payment statute, Wis. Stat. 134.93. The court evaluated federal jurisdiction under 28 U.S.C. 1332, the applicability of the Wisconsin statute of frauds, and the status of Northern Group as an independent sales representative under the statute. T4K's motion for judgment on the pleadings was partially granted, dismissing the unjust enrichment claim but denying the motion regarding other claims. The court ruled that Northern Group sufficiently pleaded its claims under Wis. Stat. 134.93, warranting further proceedings. Northern Group's motion to file a sur-reply was granted, and the order was issued on October 10, 2018.

Legal Issues Addressed

Federal Jurisdiction under 28 U.S.C. 1332

Application: The case involves diverse citizenship and an amount in controversy exceeding $75,000, establishing federal jurisdiction.

Reasoning: The case involves diverse citizenship and exceeds $75,000, establishing federal jurisdiction under 28 U.S.C. 1332.

Rule 12(c) of the Federal Rules of Civil Procedure

Application: The court applies the same standard as for a motion to dismiss, requiring the pleadings to present sufficient factual matter to suggest a plausible claim for relief.

Reasoning: Rule 12(c) of the Federal Rules of Civil Procedure allows a party to request judgment on the pleadings after the close of pleadings, applying the same standard as for a motion to dismiss.

Statute of Frauds in Wisconsin

Application: Wisconsin law requires agreements not to be performed within one year to be in writing, but the court found that the contract could potentially be performed within a year, making it not void under the statute of frauds.

Reasoning: The contract in question is undisputedly oral, and T4K argues that it could not have been performed within one year. Wisconsin law dictates that a contract is void only if it is incapable of being performed within a year, as interpreted by the Wisconsin Supreme Court.

Unjust Enrichment under Wisconsin Law

Application: Unjust enrichment requires proof of a benefit conferred, the defendant's appreciation of that benefit, and inequitable retention without compensation. It is permissible as an alternative to a breach of contract claim.

Reasoning: In Wisconsin, unjust enrichment requires proof of three elements: a benefit conferred, the defendant's appreciation of that benefit, and inequitable retention of that benefit without compensation.

Wisconsin Statute 134.93 and Independent Sales Representatives

Application: The court found that Northern Group sufficiently pleaded its status as an independent sales representative under Wis. Stat. 134.93, allowing claims for commissions and exemplary damages.

Reasoning: The court, viewing facts favorably to Northern Group, finds sufficient pleading to establish it as an independent sales representative under Wis. Stat. 134.93.