Industrial Representatives, Inc. v. Cp Clare Corporation

74 F.3d 128 (1996)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

D manufacturers electrical components such as relays and surge arrestors. D engaged P in April 1991 to solicit orders for its products in Northern Illinois and Eastern Wisconsin. D is a manufacturer’s representative, and its sales staff offers a menu of goods, achieving economies of scale for manufacturers too small to support a dedicated sales staff. By fall 1994, D's sales in P's territory exceeded $6 million annually, a tenfold increase since P's engagement. D decided to terminated P at the end of October 1994. D gave 42 days' notice; the parties' contract required only 30. D had to pay P a commission for all products, ordered before the terminal date, that were delivered in the next 90 days. P believes that it has not been paid enough for the work it did in boosting d's sales. IP sued D seeking commissions for all products delivered through 1999, plus $5 million in punitive damages. The case was dismissed, and P appealed. P acknowledges that D did not need good cause to bring their dealings to a close. In Illinois, a contract without a fixed term may be ended for any or no reason.

Issues

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Holding & Decision

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Legal Analysis

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