Safe Cig hired NewGen to help market its electronic cigarettes online. As outlined in two contracts, an Affiliate Agreement and a Consulting Agreement, Safe Cig was to pay NewGen a 20% commission on all sales resulting from the referrals NewGen's online promotions generated. In addition, Safe Cig was to grant NewGen access to Safe Cig's sales records to verify commissions paid, pay NewGen for not working with any Safe Cig competitor, and pay New Gen for the actual marketing and business consulting services. NewGen filed a suit claiming Safe Cig did not uphold their contractual obligations. The district court awarded NewGen
Safe Cig then filed two appeals claiming the damages were excessive and NewGen failed to plead diversity jurisdiction in its original complaint and prove jurisdiction prior to entry of the default judgment. NewGen, in turn, filed an amended complaint alleging that the parties were of diverse citizenship. Safe Cig then filed an answer challenging the allegations based on Safe Cig's purported lack of knowledge and information about the citizenship of its members.
The district court struck down most of Safe Cig's answers as "immaterial or impertinent" and accepted NewGen's amended allegations of diversity citizenship under 28 U.S.C. 1653 to cure the defective allegations of diversity jurisdiction, upholding the original district court's award.
DeWitt is one of the ten largest law firms based in Wisconsin. It has more than 120 attorneys practicing in
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