Lindquist Ford, Inc. v. Middleton Motors, Inc., No. 09-3883 (7th Cir. 2011)
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A successful Ford dealership in Iowa offered to assist struggling Middleton, Wisconsin dealership. The parties agreed that Iowa's general manager would provide management services to Middleton with compensation to begin after he turned Middleton profitable and also that Iowa would provide capital in exchange for an ownership interest. Negotiations continued after the manager started working at Middleton, but the parties never reached a more specific agreement. The relationship broke down after 11 months because Iowa failed to come forward with the expected cash. Still not earning a profit, Middleton did not pay for the manager's services. After a remand, the district court again entered judgment for Iowa, finding that Middleton became profitable during the manager's tenure and fired him before he had a fair opportunity to restore profitability. The Seventh Circuit reversed, stating that the factual findings were inconsistent and clearly erroneous. Iowa is not entitled to quasi-contractual compensation for services under either quantum meruit or unjust enrichment.
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