Wixon Jewelers, Inc. V. Di-Star, Ltd.

Di-Star, Ltd. (defendant), a wholesaler of diamonds, entered into a written contract with Wixon Jewelers, Inc. (Wixon) (plaintiff) on May 30, 1997. The contract stated that Wixon would purchase branded ideal-cut diamonds from Di-Star, and in exchange, Di-Star would agree to retain Wixon as the exclusive retailer of Di-Star’s branded ideal-cut diamonds in the Minneapolis and Saint Paul area. The contract required that Wixon initially purchase six of the branded diamonds, and thereafter $2,500 worth of the diamonds every month. Wixon purchased the initial six diamonds but then only made two additional purchases, in November 1997 and December 1997. Di-Star then notified Wixon that Wixon was in breach of contract and that Di-Star would be distributing through an additional retailer in the Minneapolis and Saint Paul area. Wixon sued, alleging that by adding an additional retailer, Di-Star would cause Wixon to lose approximately $1,000,000 in profits over the next 10 years. Wixon argued that Di-Star and Wixon had orally modified the contract to require that Wixon purchase $30,000 worth of diamonds each year instead of $2,500 each month, so that the amount of the purchase would be equal on a yearly basis but the purchases would be less frequent. The district court granted summary judgment to Di-Star, holding that the oral agreement failed to satisfy the statute of frauds, which required that the modification to the agreement be in writing. Wixon appealed.