Opinion ID: 1198872
Heading Depth: 3
Heading Rank: 4

Heading: Wisconsin Energy's Compliance with the Settlement Agreement

Text: So if Schwartz, FMS, and Midwest could have received references and if providing more information than called for under the policy could have been a breach, is there enough evidence to get to a jury? As to FMS, the answer is clearly no. Matthews submits that Wisconsin Energy breached the settlement agreement because it denied that she had ever worked there when FMS called. It is true that Wisconsin Energy initially failed to verify Matthews's employment. But it quickly resolved its mistake and gave a reference that complied with its policy at the time. Even if the delay fell short of Wisconsin Energy's obligations, Matthews has not shown that this delay damaged her in any way, a prerequisite to stating a claim for a breach of contract. See Brew City Redevelopment Group, LLC v. The Ferchill Group, 289 Wis.2d 795, 807, 714 N.W.2d 582 (Wis.Ct.App.2006). In addition, Matthews claims Wisconsin Energy breached the agreement by listing her final position as a credit specialist rather than a commercial service representative. But this was actually Matthews's last position when she left Wisconsin Energy's employ, even if she never considered herself a credit specialist. Because Wisconsin Energy's policy at the time called for this information, this wasn't a breach of the settlement agreement either. Similarly, there is no issue of material fact as to whether Wisconsin Energy breached the settlement agreement when corresponding with Midwest. The district court held that there was no admissible evidence that Midwest had even sought a reference, and we agree. Matthews provided the only relevant testimony. She claimed in her deposition that she had a conversation with a Midwest human-resources representative, Tricell Brown, who said she had received a poor reference. But in her deposition, Brown denied she ever talked with anyone at Wisconsin Energy. Thus, the only evidence that Brown received this reference is Matthews's statement as to what Brown told her. Offering a statement by a third party like Brown to prove a fact contained in that statement is inadmissible hearsay. FED. R. EVID. 801(c); 802. As a result, no admissible evidence supports a claim that Brown received a poor reference or that Wisconsin Energy otherwise breached the settlement agreement when talking to her. But the same cannot be said of the reference given to Schwartz. As represented by Wisconsin Energy, its policy entailed verifying only the dates of employment, final salary, and the title of the last position held. Neither participant in the conversation denies that English told Schwartz of Matthews's litigation history. This information went well beyond the objective information concerning Matthews's dates of employment, final salary, and final position held. A jury could believe Schwartz's version of the conversation, which included what would be unfavorable information regarding Matthews. And it could likewise conclude that the parties agreed that Wisconsin Energy would provide only the objective information set out in its policy. If so, this would show that Wisconsin Energy breached the settlement agreement. Matthews has also put forth evidence of damages stemming from this breach that a jury could believe. In Wisconsin, a party is damaged if she is denied the benefit of the bargain, and the award of damages for a breach of contract should compensate an injured party for losses that necessarily flow from the breach. Thorp Sales Corp. v. Gyuro Grading Co., Inc., 111 Wis.2d 431, 438, 331 N.W.2d 342 (Wis.1983). Here, Matthews's expected benefit from the settlement agreement was to be a more competitive candidate when seeking future employment based on a good reference from her long-time employer. Schwartz testified in his deposition that he took Wisconsin Energy off of Matthews's resume after his conversation with English. Given Matthews's nearly two-decade employment there, this gap in her employment history could have hurt her prospects of landing a future job through the social-security program. If Schwartz's version is believed, a jury could conclude that Matthews was denied the benefit of this contract when Schwartz so edited her resume, which in turn followed from the conversation between Schwartz and English. This is not to say that a jury must believe Schwartz's version of things. But if the jury does, it could find for Matthews. Accordingly, granting Wisconsin Energy's summary judgment motion on this claim was error.