Great Lakes Yacht Sales Inc v. Seabring Marine Industries Inc
2:19-cv-01543
E.D. Wis.Jan 17, 2020Background
- Plaintiff Great Lakes Yacht Sales, Inc. (Great Lakes) was appointed a non-exclusive retail dealer by defendant Seabring Marine Industries, Inc. d/b/a Monterey Boats (Monterey) under a written Dealer Agreement entered August 30, 2016.
- Dealer Agreement required Great Lakes to maintain facilities, inventory, trained personnel, identify itself as a Monterey dealer, promote and advertise Monterey products, carry current model inventory, and permitted use of Monterey marks.
- Great Lakes purchased seven yachts as part of becoming a dealer; at termination it had two Monterey boats in inventory worth $519,506.02.
- Monterey notified Great Lakes on March 13, 2019 that the dealer relationship would terminate April 12, 2019; Monterey refused Great Lakes’ demand to repurchase the two boats.
- Great Lakes sued under the Wisconsin Fair Dealership Law (WFDL), Wis. Stat. ch. 135, alleging Monterey’s refusal to repurchase violates the WFDL; Monterey moved to dismiss under Fed. R. Civ. P. 12(b)(6).
- The magistrate judge denied the motion to dismiss, holding the complaint plausibly alleges facts sufficient to give fair notice and to permit a reasonable inference that a WFDL "dealer" relationship (community of interest) existed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether complaint plausibly alleges a WFDL "dealership"/community of interest sufficient to survive a Rule 12(b)(6) motion | Complaint alleges contractual obligations (facility, inventory, personnel), marketing/promotional duties, required inventory levels, and use of Monterey marks — plausibly showing interdependence and continuing financial interest | Complaint fails to plead the Ziegler guideposts (continuing financial interest and interdependence) with sufficient detail to establish a WFDL dealer | Denied dismissal: the alleged duties and obligations give fair notice and make it plausible Great Lakes and Monterey shared a community of interest; detailed proof reserved for later stages |
| Whether plaintiff was required at pleading stage to allege all Ziegler facets or evidentiary facts supporting community of interest | Plaintiff need not plead every facet or evidentiary fact at the outset; plausibility suffices | Defendant contends plaintiff must plead facts satisfying Ziegler guideposts now | Court held plaintiff need only plead facts that make a dealer relationship plausible; detailed facets and proof are for discovery/trier of fact |
Key Cases Cited
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (established the federal "plausibility" pleading standard)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (clarified plausibility and distinguished conclusory allegations)
- Erickson v. Pardus, 551 U.S. 89 (2007) (pleadings need not contain detailed factual allegations to give fair notice)
- W. Bend Mut. Ins. Co. v. Schumacher, 844 F.3d 670 (7th Cir. 2016) (on a Rule 12(b)(6) motion, court accepts complaint allegations as true)
- Vincent v. City Colls. of Chi., 485 F.3d 919 (7th Cir. 2007) (plaintiff need not allege proof-level facts at the pleading stage)
- Ziegler Co. v. Rexnord, 139 Wis.2d 593, 407 N.W.2d 873 (Wis. 1987) (identified continuing financial interest and interdependence guideposts for WFDL "community of interest")
- Cent. Corp. v. Research Prods. Corp., 272 Wis.2d 561, 681 N.W.2d 178 (Wis. 2004) (articulated ten non-exhaustive facets courts weigh to determine dealer status under WFDL)
- Water Quality Store, LLC v. Dynasty Spas, Inc., 328 Wis.2d 717, 789 N.W.2d 595 (Wis. Ct. App. 2010) (applied Ziegler and the ten-facet analysis to WFDL dealer inquiries)
