American Hospital Supply Corp. v. Hospital Products Ltd.

780 F.2d 589 (7th Cir. 1986)


Hospital Products (D) was one of the world's two principal manufacturers of reusable surgical stapling systems for internal surgical procedures. American (P) was the world's largest distributor of medical and surgical supplies and became D's exclusive distributor in the U.S. The contract was for three years but provided for renewals automatically for successive one-year periods for up to ten years total. There was 90 days notice provision for termination and for the initial three-year period that notice day was June 3, 1985. On that day D sent P a letter demanding to know of P intended to renew, and that silence meant renewal. P affirmed renewal. D then decided the next day to terminate. P sued D and moved for a preliminary injunction, which was granted. D filed for bankruptcy. D appealed under 28 U.S.C.¤1292 (a)(1).