Echo, Inc. v. Timberland Machines & Irrigation, Inc.

Federal 7th Circuit Court
Civil Court
Franchise
Citation
Case Number: 
Nos. 11-1489 & 11-1493 Cons.
Decision Date: 
October 25, 2011
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff's motion for summary judgment in action alleging breach of contract arising out of defendant's failure to play plaintiff for power equipment supplied by plaintiff pursuant to distributor agreement and in favor of plaintiff on defendant's counterclaim alleging violation of Connecticut Franchise Act when plaintiff terminated said distributor agreement and assigned defendant's sales territory for plaintiff's products to third-party. Defendant could not establish Franchise Act violation where defendant failed to show that sales of plaintiff's products constituted more than 50% of defendant's business, and thus failed to establish requisite franchise relationship. Fact that defendant subsequently went out of business after said termination did not require different result. Moreover, Dist. Ct. did not err in awarding over $215,000 in interest on breach of contract claim where said award was based on rate of prime plus 4% that was stated in invoices when products were shipped to plaintiff.