Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION—N.D. Ga.: Questions remain in whether survey products distribution agreement constitutes “dealership”, (Feb 12, 2015)

By Greg Hammond, J.D.

A surveying and geographical measurement products maker could not persuade the federal district court in Atlanta that no questions of fact remain as to whether a distribution agreement constituted a “dealership” under the Wisconsin Fair Dealership Law (WFDL). The manufacturer’s motion for summary judgment was therefore denied (DeTemple v. Leica Geosystems Inc., February 9, 2015, Story, R.).

Leica Geosystems Inc. produces surveying and geographical measurement products and systems. Cliff DeTemple, doing business as Turning Point Systems Group, entered into a distribution agreement with Leica to distribute Leica’s survey products. After missing his performance targets, however, Leica terminated the survey distribution agreement. Leica moved for summary judgment on DeTemple’s WFDL claim.

The central issue, according to the court, was whether the relationship between DeTemple and Leica constituted a “dealership” under the WFDL. The element that mostly distinguishes dealerships from other forms of business agreements is whether a community of interest exists in the business of offering, selling, or distributing goods or serves at wholesale, retail, by lease, agreement, or otherwise. In considering a non-exclusive list of factors that courts consider to determine whether a community of interest exists, the court concluded that it could not determine the dealership issue on summary judgment. Specifically, it found that several aspects of the relationship created issues of fact that should go to a jury, including the percentage of revenue derived from Leica Survey products; DeTemple’s need to hire new personnel; DeTemple’s purchase of a building to house a dedicated showroom; cooperation in setting sales targets; and DeTemple’s advertising expenses.

The case number is1:09-CV-03272-RWS.

Attorneys: Amy L. Lindner (The Schroeder Group, SC) for Cliff DeTemple. Karen E. Sandrik (Troutman Sanders, LLP) for Leica Geosystems Inc.

Companies: Leica Geosystems Inc.

Cases: FranchisingDistribution GeorgiaNews