Solo Sales, Inc. v. North America OMCG, Inc.

Case Date: 11/05/1998
Court: 2nd District Appellate
Docket No: 2-97-1151

Solo Sales, Inc. v. North America OMCG, Inc., No. 2-97-1151

2nd Dist. 11-5-98

No. 2--97--1151

November 5, 1998

________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

________________________________________________________________

SOLO SALES, INC.,

Plaintiff-Appellee,

v.

NORTH AMERICA OMCG, INC.,

Defendant-Appellant.

Appeal from the Circuit Court of Winnebago County.

No. 97--AR--220

Honorable

Timothy R. Gill,

Judge, Presiding.

________________________________________________________________

JUSTICE RATHJE delivered the opinion of the court:

Defendant, North America OMCG, Inc., appeals the entry of summary judgment in favor of plaintiff, Solo Sales, Inc. Defendant contends that (1) genuine issues of material fact preclude the entry of summary judgment; and (2) if no genuine issues of material fact exist, summary judgment should be entered in its favor. We affirm.

Defendant manufactures industrial equipment. Plaintiff, a manufacturer's representative, acts as an agent for various manufacturers to sell the manufacturers' products to third parties. In December 1994, the parties entered into an oral agency agreement. During the agency relationship, plaintiff approached Dorco, a Wisconsin company, about purchasing defendant's machines. Dorco indicated that it wished to purchase three machines. Defendant was reluctant to sell three machines at once because of the substantial amount of money involved and the possibility that the machines would not perform as Dorco expected. In June 1995, instead of purchasing three machines, Dorco agreed to purchase one machine and lease a second machine with the option to return it to defendant if Dorco so desired. Dorco also had the option, however, of purchasing the second machine and a third machine, both at a discounted prices. As part of the negotiation of the contract, plaintiff agreed to reduce its sales commission on all three machines from its typical 5% to 4