Collins Drugs, Inc. v. Walgreen Company

539 F. Supp. 1357 (1982)

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Nature of the Case

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Facts

Ps are pharmacies doing business in the State of Wisconsin. D is a corporation organized under the laws of the State of Illinois. D manufactures and sells under its own private labels a wide variety of drugs, beauty aids, and household commodities. Prior to October 1, 1980, D sold these products to the consuming public through a nation-wide system of both company-owned and independently-owned stores. Every independently-owned drug store operated under a standard written agreement, which governed all aspects of the contractual relationship between D and Ps including such matters as the right of the independently-owned store to use the D trade name and trademark, D's right to locate a company-owned store near the independently-owned store, and the minimum amount of D products that the retailer must purchase each year. The Retailer's Agreement expressly provided that '(i)n the event D determines at any time to discontinue all similar Agreements, it may, at its option, terminate this agreement upon thirty days' written notice' to Ps. The D-P agreements were not exclusive as Ps could purchase the same types of goods from other suppliers. D decided to discontinue the products on the ground that these independently-owned drug stores were producing an inadequate rate of return. D gave 30 days-notice as required by the agreement. D also furnished Ps’ names and addresses to manufacturers, wholesalers, suppliers, and vendors for the purpose of assisting Ps in finding alternative sources of supply. Ps sued D for damages and injunctive relief under a Wisconsin Fair Dealership Law. D moved for summary judgment.