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Contracts Keyed to Fuller
Stanley Gudyka Sales v. Lacy Forest Products Co.
Citation:
686 F. Supp. 1301 (N.D. Ill. 1988)Facts
In July 1981, Gudyka and Lacy entered into an oral agreement for Gudyka to serve as Lacy’s sales representative. This arrangement was formalized in a written letter agreement dated February 1, 1983, which described Gudyka as an “independent contractor” who would “act as a commissioned representative in the sales of lumber, cutstock, millwork and related products.” The agreement provided that Gudyka would receive 50% of the “net margin” on sales to “protected accounts,” with net margin defined as the gross invoice amount less various expenses. The agreement could be terminated “for just cause” with 30 days’ notice. On June 10, 1983, Lacy terminated the agreement, claiming Gudyka had withheld commissions it had received directly. After termination, Lacy directly served Gudyka’s former “protected accounts.” Gudyka filed suit for breach of contract, and after nearly four years of litigation, amended its complaint to add claims that the relationship was actually a partnership and that Lacy was unjustly enriched by continuing to serve Gudyka’s accounts after termination.
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