Advance Sign Grp., LLC v. Optec Displays, Inc.

Advance installs and services signs. It alleges that it entered into a contract to sell Optec’s electronic messaging signs to foodservice customers. Advance claims that Optec agreed not to sell directly to the foodservice companies. Rogers, a franchisee of Sonic Restaurants, was a long-time Advance customer. Advance and Optec undertook a pilot project to install signs at Sonic corporate-owned locations and Rogers’s franchises. Advance claimed that Optec violated the agreement by negotiating with Sonic directly. Advance and Optec entered a second agreement by phone, with Optec to pay Advance 12 percent of net on sales made by Optec to customers introduced by Advance. Advance sent a letter memorializing the terms; Optec made a minor change, unrelated to commission; Advance incorporated the change and returned the letter. Optec refused to sign. Following additional negotiations, Optec signed a two-year agreement with Sonic and installed signs at 1,400 locations, without Advance being involved. A jury found in favor of Advance on breach-of-contract claims and a claim for tortious interference and awarded damages of $3,444,000 for breach of the telephone agreement. The Sixth Circuit affirmed, rejecting claims that: there was no meeting of the minds for the telephone agreement; Ohio’s Statute of Frauds precluded enforcement; Advance did not prove its tortious interference claim; and that the evidence did not support the damages awards. View "Advance Sign Grp., LLC v. Optec Displays, Inc." on Justia Law