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Watson v. Wood Dimension
California Court of Appeal
257 Cal. Rptr. 816 (1989)
Fisher Corporation (Fisher) was a customer of Wood Dimension, Inc. (WDI) (defendant), accounting for 30 to 50 percent of WDI’s sales. After Fisher began purchasing from another seller, WDI hired Dale Watson (plaintiff), who had a personal relationship with Ira Horon, Fisher’s general manager, to help WDI reacquire Fisher’s business. WDI agreed to pay Watson 3 percent commission on all Fisher orders if Fisher became a customer again. WDI and Watson did not reduce their agreement to writing and did not agree on any terms covering the termination of the agreement. In April 1983, Fisher agreed to buy from WDI once again. This agreement would result in over $9,000,000 in new business for WDI. In May 1984, WDI terminated its agreement with Watson. Fisher nevertheless continued to buy from WDI. In January 1985, Horon died. Watson sued WDI based on quantum meruit, among other claims. The trial court awarded Watson $155,955.84 based on commissions due but unpaid, up to December 15, 1984. Both parties appealed.
Rule of Law
Holding and Reasoning (Sonenshine, J.)
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