Collins Drugs, Inc. v. Wallgreen Co.

1982

Court: US District Court, Western District of Wisconsin

Facts: Wallgreen decides to get out of the franchise business in Wisconsin. A bunch of franchisees are uptight about this.

Posture: Appeal by defendant; motion for summary judgment.

Issue: Does the WI Fair Dealership Law permit a granter to cancel all dealership arrangements for bona fide economic reasons?

Holding: No: you have to have good cause. No injunctive relief, only damages.

Rule: Several different resolutions, depending on when the dealership

Reasoning: The legislature wasn't trying to create a perpetual care responsibility for dealerships, but dealers should be reimbursed for losses resulting from termination. The law covers all such circumstances, including non-discriminatory withdrawals from an entire geographic range.

Dicta: The court suspects that this law may not be a good idea, but acknowledges that it's not for them to say.