Schreiber Foods, Inc. v. Wang

Dist. Ct. did not err in granting defendant's motion for summary judgment in common law fraud action alleging that defendant made misrepresentations during negotiations that led plaintiff to contract for sale of infant formula with third-party Chinese entity (which in turn was purchasing said formula on behalf of fourth-party), where Dist. Ct. found that plaintiff's lawsuit was barred under Wisc. law by economic-loss doctrine. Plaintiff cannot sue in tort where plaintiff has contract with defendant and where contract law provides adequate remedy for type of injury alleged, and record otherwise showed that plaintiff unilaterally sent formula to third-party that was different than what was in contract. Moreover, even if defendant had made fraudulent misrepresentation as to whether fourth-party would accept shipment of proper formula, plaintiff had failed to negotiate contract that would have included steps to protect itself against range of risks of nonpayment from third-party.