Breach of Contract

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WI Court of Appeals – District I

Case Name: Commonwealth Assisted Living, LLC, v. 3M Resident Monitoring, Inc.

Case No.: 2016AP1526

Officials: Brennan, P.J., Kessler and Brash, JJ.

Focus: Breach of Contract

P.J. Commonwealth Assisted Living, LLC, (Commonwealth) appeals an order dismissing all three of its claims against 3M Resident Monitoring, Inc. (3M RM). Commonwealth contends that 3M RM directly, or impliedly, contracted for lifetime service for the monitoring equipment that Commonwealth purchased from 3M RM. Commonwealth argues that when 3M RM subsequently exited the business, leaving Commonwealth without software upgrades and technical support, 3M RM became liable to Commonwealth for breach of contract, breach of the duty of good faith and fair dealing, and violation of WIS. STAT. § 100.18 (2015-16). There is ample evidence in the record that the stability of a vendor is a routine consideration for companies purchasing a resident monitoring system. On this record, a reasonable jury could find that the 2012 representation that 3M RM “will be in business for the long term” was a “significant factor” contributing to Commonwealth’s decision to purchase the system. Therefore, 3M RM is not entitled to summary judgment.

Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.