Nauga, Inc. v. Westel Milwaukee Co., Inc.

WEDEMEYER, P.J.

(dissenting). I write separately because I cannot agree with the result reached *320by the majority opinion. I would affirm the trial court's rescission of the new agency agreement containing the settlement provision. "The essence of a contract is whether the minds of the parties have met on the same thing. This is ... a factual determination for the trial court to make based upon the evidence before it." Estate of Kobylski v. Hellstern, 178 Wis. 2d 158, 189, 503 N.W.2d 369, 381 (Ct. App. 1993). In reviewing factual questions, this court applies the "clearly erroneous" rule: this court shall uphold the trial court's findings unless they are clearly erroneous. Noll v. Dimiceli's, Inc., 115 Wis. 2d 641, 643, 340 N.W.2d 575, 577 (Ct. App. 1983).

In reviewing this matter, I conclude that the trial court's finding of fact that there was no meeting of the minds was not clearly erroneous and that this finding supports the trial court's conclusion of law that the stipulation and new agency agreement are not enforceable. In essence, my review involved examining a stipulation for dismissal conditioned upon an alleged contractual agreement. In a well-honed oral discourse from the bench, the trial court made a searching inquiry as to the actions and statements of the personnel and counsels involved in the drafting, reviewing, *321and executing the stipulation for dismissal of Nauga's claims and Westel's new proposed agency agreement. It expressed concern about the conduct of the parties throughout their litigious relationship up to and including the drafting and execution of the relevant documents. It observed continuing distrust between them. It noted the absence of any discussion about the release of claims clause (Section 30.10 in the new proposed agreement) when the new agreement was presented to a representative of Nauga at a meeting called for the purpose of explaining the new proposed agency agreement. The court was troubled that, during the course of these negotiations, Westel circumvented its own counsel who was heavily involved in this litigation. As for Nauga's conduct, the trial court noted that not all of its proposed response changes were highlighted by different type. When the changes were made by Nauga's counsel, he did not initially communicate with Westel's counsel and, when he finally did, he only forwarded the first page and the signature page without including the $250,000 settlement provision. The record reflects, and the court recognized, that Nauga's counsel did not expect Westel to accept its settlement provision and was surprised when the agreement was returned unchanged and executed. The court then reasoned that Nauga, when confronted with the unexpected waiver of claims paragraph, believed that Westel was "trying to slip a fast one past" it and then countered with the $250,000 settlement condition.

With the evidence of these tactics before it, the trial court doubted that the conditions unilaterally inserted in the agreement were ever contemplated by both parties. When the trial court seasoned its examination with the recognized concepts of good faith, fair dealing and the duty to cooperate in a contractual set*322ting, it did not erroneously infer that there was no meeting of the minds. Its conclusion was reasonably based. Its analysis ineluctably leads to the result. I would conclude that there was no error on the trial court's part. Accordingly, I respectfully dissent.1

Had this ruling been affirmed by the majority of the court, my analysis would turn to the additional issues raised: (1) whether the trial court erred in concluding that Westel's change of the commission schedule was not a substantial change in the competitive circumstances of the dealership agreement under the WFDL; (2) whether the trial court erred in concluding that Nauga was not a dealer within the meaning of the WFDL; and (3) whether the trial court erred in denying Nauga's request for pre-judgment interest. I would conclude that the trial court did not err when it found that the evidence was insufficient to provide protection under WFDL; and there was no trial court error regarding pre-judgment interest because there was a genuine dispute rendering pre-judgment interest inappropriate. My analysis on these issues, however, is not necessary because of the majority's disposition of this case.