Allen Petty v. ICU Medical, Inc.
Published: Jul. 11, 1998 | Result Date: Apr. 7, 1998 | Filing Date: Jan. 1, 1900 |Case number: 761684 Verdict – $795,448
Facts
On Feb. 11, 1993, plaintiff Allen Petty, a salesman of medical devices, and defendant ICU Medical Inc. executed a written contract by which the plaintiff was to receive sales commissions for selling a medical device known as the "Clave Connector." Clave is a needleless injection site that attaches to intravenous (IV) lines. It reduces the risks of hospital personnel being stuck with contaminated hypodermic needles. Per the plaintiff, on Sept. 13, 1993, he caused a contract to be signed between ICU Medical and a third party, McGaw Inc., pursuant to which McGaw purchased several million dollars worth of Clave products. On April 19, 1994, ICU Medical terminated the plaintiff's sales commission contract. (Per the defendant, the commissions contract was terminated in May.) The sales contract allowed for a termination with or without cause by either party. At the time the complaint was filed, the plaintiff had not been paid any sales commissions by the defendant. Per the plaintiff, the sales contract provided for sales commissions equal to 10 percent of gross sales prior to termination of the contract (April 19, 1994), 10 percent of net sales for the first year after termination, 5 percent of net sales for the second year after termination, and 2.5 percent of net sales for the third year after termination. The plaintiff brought this action against the defendant based on breach of written and oral contract, quantum meruit and fraud theories of recovery. Defendant ICU Medical filed a cross-complaint against the plaintiff for fraud, conversion, misappropriation of trade secrets, and breach of contract. As a cross-complainant, ICU alleged that unbeknownst to ICU Medical, its agent, plaintiff, had been paid $500 per day by McGaw during the negotiations between ICU Medical and McGaw for the sale of the Clave and negotiated a deal to purchase the Clave that was unfairly favorable to McGaw. ICU Medical also alleged that without its knowledge or consent, the plaintiff provided McGaw with confidential dealer information and the 5-10K (trade secrets) for the Clave. It also alleged that the plaintiff took the defendant's dealer list and trade secrets relative to the Clave (known as the 5-10K).
Settlement Discussions
Per the plaintiff, the plaintiff made a settlement demand for $250,000. Per the defendant, the plaintiff made a settlement demand for $500,000. The defendant made no offer on the complaint and offered to settle the cross-complaint for $50,000 plus attorney fees.
Other Information
The verdict was reached approximately 2+ years after the case was filed. A settlement conference was held on Nov. 19, 1996, before a pro tem that did not result in a settlement. The defendant's motion for nonsuit was granted on the plaintiff's claim for quantum meruit. POST TRIAL MOTIONS: The defendant has made a motion for judgment notwithstanding the verdict, which has been argued and taken under submission by the trial court.
Deliberation
two days
Poll
9-3
Length
10 days
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