Sales May Not Mean Sales

PDBI and Varel entered into an agreement in which PDBI agreed to act as Varel’s authorized sales representative by providing “sales and technical service” to certain customers.  Pursuant to this contract, PDBI met with MMS several times to pitch Varel’s products and provide product price sheets, product requirements, and technical services.  Varel then cancelled its agreement with PDBI, and informed PDBI that any sales to MMS would be made directly by Varel.  MMS subsequently began buying products directly from Varel.  PDBI sued Varel, alleging that PDBI procured MMS as a buyer of Varel products, provided “sales and technical services” to MMS, and was “entitled to commission on sales” to MMS.  The Court of Appeals reversed the trial court’s grant of summary judgment in favor of Varel.  The Court reasoned that PDBI’s evidence raises a fact issue whether it rendered sales and technical service to MMS under the terms of its contract with Varel.

PetroDrillBits Int’l v. Varel Int’l Indus., No. 05-12-00406