DP Aviation v. Smiths Industries Aerospace & Defense Systems Ltd.

This case concerns a monetary dispute over the award of incentive fees, or commissions, pursuant to a representation agreement. Appellees DP Aviation, M.C. Pietromonaco, Inc., and Micom, Inc. (collectively, “DPA”) alleged that Appellant Smiths Industries Aerospace and Defense Systems, Ltd. (“SIADS”) breached its representation agreement with DPA by refusing to pay incentive fees on products supplied by SIADS to The Boeing Company (“Boeing”). Following trial, judgment, and supplemental judgment, the district court awarded DPA unpaid incentive fees, underpaid incentive fees for a class of products manufactured by SIADS’s Ha-rowe division (“Harowe Products”), and prejudgment interest at twelve percent in accord with Washington law. SIADS appealed. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We affirm the district court’s award to DPA of the unpaid incentive fees and the award of prejudgment interest at twelve percent on the unpaid incentive fees, but vacate its award of underpaid incentive fees on the Harowe Products.

FACTS AND PROCEDURAL HISTORY

DPA is a Washington-based general partnership. SIADS is a subsidiary of Smiths Industries, PLC (“SIPLC”) (formerly Smiths…