On March 22, 2024, firm partners Glenn Ricketti and Krista Reale secured an $11.6 million jury verdict after a one week trial in Delaware. The jury deliberated for less than three hours before finding that the client, a Florida company, was owed past and future commissions.
Case Summary – Breach of Contract Claim
DLS provided sales generation services to SmartSense under a reseller agreement between DLS and Tempalert (TA), which was later acquired by SmartSense. That agreement obligated SmartSense to pay commissions to DLS based on revenue SmartSense received from customers generated by qualified sales leads from DLS. The product and service at issue in the case were temperature and humidity monitoring equipment and subscription services used by customers to monitor and report temperatures of perishable goods, including refrigerated prescription medications, as may be required by state law.
DLS referred Walmart and other customers to TA, which TA accepted as a qualified lead; TA and then SmartSense paid commissions to DLS on revenue generated by its contracts with customer qualified leads.
In 2019, SmartSense terminated the reseller agreement and ceased paying commissions thereafter. Under the terms of the agreement, SmartSense was obligated to continue paying commissions on all customer sales from accepted qualified leads of DLS, even after termination of the agreement, so long as the qualified lead remained a customer of SmartSense. As of the end of 2023, DLS was owed $1.6 million in past commissions as well as future commissions.
Data Logger Solutions, LLC v. Digi SmartSense, LLC and Digi International, Inc.
