Control Solutions LLC v. Oshkosh Corporation
1:10-cv-00121
N.D. Ill.Jul 27, 2012Background
- CS designs and manufactures powered door systems (PDS); Oshkosh makes armored vehicles and sought a PDS supply arrangement for a DoD M-ATV program.
- CS delivered prototypes and a production-representative PDS unit; Oshkosh paid $46,000 for four units for testing.
- In 2009, Oshkosh reviewed specifications and requested quotes; CS provided pricing and delivery estimates.
- Oshkosh and CS continued development but never reached an enforceable contract; Oshkosh later contracted with Parker Oildyne for PDS production.
- Plaintiff moved for partial summary judgment on contract claims; Oshkosh moved for summary judgment and to strike declarations; the court denied in part and granted Oshkosh’s summary judgment on all counts.
- The court held that the Statute of Frauds applies and that no express or implied contract existed; counts for unjust enrichment and promissory estoppel fail; overall summary judgment granted to Oshkosh.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there an express contract formed for all Oshkosh PDS needs? | CS asserts final terms—product, price, delivery—were agreed. | Oshkosh contends terms were not final and exclusivity/minimum quantity missing. | No express contract; lack of exclusivity/quantity prevents formation. |
| Was there an implied-in-fact contract based on conduct? | CS argues course of dealing supports implied contract to supply PDS for government bid. | Oshkosh argues conduct shows ongoing negotiation, not a binding implied contract. | No implied-in-fact contract; no established course of dealing. |
| Does the Statute of Frauds bar the contract claims? | CS contends exceptions apply for specially manufactured goods. | Oshkosh argues no writing satisfying 2-201(1) or applicable exception. | Statute of Frauds applies; specially manufactured goods exception not satisfied. |
| Are unjust enrichment or promissory estoppel viable? | CS relies on breach-related detriment and benefit retention. | Without contract, no unjust enrichment; promissory estoppel requires an unambiguous promise. | Both claims fail; no contract and no unambiguous promise. |
| What is the effect of the evidence on damages and summary judgment? | CS seeks damages for breach and related losses. | Damages speculative; measures inappropriate under Statute of Frauds. | Damages barred; summary judgment for Oshkosh on all counts. |
Key Cases Cited
- Brooklyn Bagel Boys, Inc. v. Earthgrains Refrigerated Dough Products, Inc., 212 F.3d 373 (7th Cir. 2000) (essential element of a requirements contract is buyer’s promise to purchase all its requirements)
- Jannusch v. Naffziger, 379 Ill. App. 2d 381 (4th Dist. 2008) (oral contract existence supported by defendants’ conduct and actions)
- Pritchett v. Asbestos Claims Mgmt. Corp., 332 Ill. App. 3d 890 (5th Dist. 2002) (principles on contract formation in Illinois Appellate context)
- Cleary v. Philip Morris, Inc., 656 F.3d 511 (7th Cir. 2011) (unjust enrichment tied to related contract claim; standalone recovery possible but limited)
- Henderson-Smith & Associates, Inc. v. Nahamani Family Services Center, Inc., 323 Ill. App. 3d 15 (2d Dist. 2001) (contract elements and recovery framework under Illinois law)
- E.C. Styberg Eng’g Co. v. Eaton Corp., 492 F.3d 912 (7th Cir. 2007) (contract formation considerations and conduct-based agreements)
