Industrial Representatives, Inc. v. Cp Clare Corporation

74 F.3d 128 (1996)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

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.