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Select Creations, Inc. v. Paliafito America, Inc.
United States District Court for the Eastern District of Wisconsin
911 F. Supp. 1130 (1995)
Paliafito America (Paliafito) (plaintiff) contracted with Many Amazing Ideas, Inc. (MAI) for the exclusive right to distribute its grip ball toy in the United States for $1 million. Paliafito hired Select Creations (Select) (defendant) as a marketing and sales consultant. Select then contracted with Forman Marketing & Sales Corporation (Forman) to sell the grip ball. Select and Forman received commissions from Paliafito. After a few months, MAI, Select, and Forman began to discuss cutting Paliafito out of the distribution of the grip ball. In a secret meeting, MAI told Select and Forman that it had filed suit to end its relationship with Paliafito and instructed the two companies to act accordingly. Meanwhile, Paliafito continued to pay commissions to Select and Forman. Paliafito learned of MAI’s intention to circumvent the original distribution agreement and to work directly with Select and Forman. Paliafito claimed that Forman breached its duty of loyalty to Paliafito and moved for partial summary judgment.
Rule of Law
Holding and Reasoning (Warren, J.)
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