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Rmke LLC and Contractors v. Jones Blair Company Doing Business As Neogard

September 3, 2011

RMKE LLC AND CONTRACTORS SUPPLY SERVICES LLC, PLAINTIFF,
v.
JONES BLAIR COMPANY DOING BUSINESS AS NEOGARD, DEFENDANT.



The opinion of the court was delivered by: William C. Griesbach United States District Judge

ORDER GRANTING DEFENDANT'S MOTION TO DISMISS

Plaintiffs RMKE, LLC and Contractors Supply Services, LLC are Wisconsin limited liability companies based in Omro, Wisconsin. Defendant Jones Blair is a Texas corporation that manufactures and sells protective coatings. In 2008, Jones Blair and the plaintiffs entered into a manufacturer-distributor agreement under which the plaintiffs purchased and resold certain Jones Blair Neogard flooring and waterproofing products. The agreement also provided that the parties agreed that "any controversy relating to the terms of this agreement shall be settled by binding arbitration administered by the American Arbitration Association."

On June 10, 2011, plaintiffs commenced this action in the circuit court for Winnebago County. In their complaint, plaintiff alleged that Jones Blair violated the Wisconsin Fair Dealership Law (WFDL) by terminating the agreement without providing sufficient notice or an opportunity to cure the default as required under the WFDL. Defendants removed the case to federal court and have filed a motion to dismiss or, in the alternative, stay to allow arbitration.

Defendants indicate that arbitration is already proceeding in Texas pursuant to the terms of the agreement between the parties. Plaintiffs ...


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