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Industrial Representatives, Inc. v. CP Clare Corp.

United States Court of Appeals for the Seventh Circuit

74 F.3d 128 (1996)

Relevant factsFree

CP Clare (defendant) hired Industrial Representatives (IRI) (plaintiff) to solicit Midwest orders for its products under a contract requiring 30 days' termination notice and commissions on pre-termination orders delivered within 90 days of that notice; as CP Clare's Midwest sales grew past $6 million, it gave IRI 42 days' notice and paid the contractually required 90 days of commissions. IRI sued seeking five years of post-termination commissions plus $5 million in punitive damages, arguing its efforts had built lasting goodwill benefiting CP Clare, and the district court dismissed the complaint for failure to state a claim.

IssueFree

Whether each party to a contract has an obligation, under the implied duty of good faith, to avoid taking opportunistic advantage of the other party.

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