Brown McCarroll Partner, Peter J. Harry, secured a unanimous verdict for $1.7 million from a Collin County jury for professional manufacturers’ representative, Circuit – Metals, LLC d/b/a Intermarc, in a tortious interference of contract lawsuit against Fujitsu Network Communications, Inc. and their senior director of procurement.
Intermarc enjoyed a long-term business and contractual relationship with Humanetics, as its manufacturers’ representative, dating back to 1993. In 2004 after six years of trying, Intermarc brought Fujitsu in as a client and served as the exclusive sales representative in this relationship, providing Fujitsu with a low cost, high quality telecommunications supplier and growing the account from $176.31 in 2004 to multi-million dollars in annual revenue for Humanetics.
Several years later this relationship changed. Plaintiffs presented evidence at trial that Fujitsu approached Humanetics about cutting Intermarc out of their relationship so they would not have to pay a premium for the commissions Humanetics owed Intermarc. Plaintiff’s evidence showed that ultimately Humanetics terminated its contract with Circuit-Metals to stop the payment of those commissions.
“Our firm invested years developing the Fujitsu business on behalf of our principal,” said Larry Tooker, Sr., President, Intermarc. “The actions of Fujitsu’s senior director of procurement not only caused the termination of the Fujitsu account from our exclusive sales agreement, but ultimately the destruction of our sixteen-year partnership with our principal.”
Fujitsu claimed it was justified in doing so, but the jury found they did not act in good-faith and that the harm to Intermarc resulted from malice, fraud or gross negligence. As a result, the jury returned a verdict for Intermarc in the amount of $700,000 in actual damages and $1.0 million in punitive damages. In a post-trial motion, Fujitsu attorneys have indicated they intend to contest the jury award. The client’s actual recovery cannot be determined until all appeals are exhausted and attorney’s fees and expenses are deducted.
“Many outside sales representatives and other professionals who work for commissions are denied their hard-earned compensation,” said Harry. “Intermarc refused to take this lying down, and was fortunate to survive the three years and five months it took for this case to get to trial so justice could be served.”
“Our attorney, Pete Harry, was outstanding,” said Tooker. “We were so fortunate to have him leading this battle just as we were in a similar trial last year.” In February 2011, Harry also obtained a unanimous verdict in Dallas County District Court against Humanetics. That case resulted in a confidential settlement.
