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Emirat AG v. High Point Printing LLC

United States District Court for the Eastern District of Wisconsin
248 F. Supp.3d 911 (2017)


Facts

A telephone-services company hired Emirat AG (plaintiff) to print 25 million scratch-off phone cards with promotional games and prizes that required matching six of 12 scratch-off boxes to win. Emirat contracted High Point Printing LLC (codefendant), which in turn subcontracted with WS Packaging Group, Inc. (codefendant), to print the cards. WS guaranteed the accuracy of the printing but not the scratch-off game construction. Letters of indemnification between WS and High Point provided that any action by the buyer had to be brought within one year of delivery of the cards. WS printed and shipped the first batch of game cards in the summer of 2009. However, the cards “candled,” meaning that holding bright light behind them showed the game prizes through the scratch-off material. WS printed and shipped a second batch of cards in November 2009, but the cards again candled. Emirat sued High Point and WS for breach of contract in August 2012, but High Point had dissolved by that time and failed to appear in the lawsuit. Emirat and WS both moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Clevert, J.)

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