Distributor Termination Cases

Federal Cases

Eyerman v. Mary Kay Cosmetics, Inc., 967 F.2d 213 (6th Cir. 1992). A former high level distributor (national sales director) brought an action against Mary Kay Cosmetics alleging handicap discrimination, infliction of emotional distress, bad faith breach of contract, breach of implied contract, promissory estoppel, breach of fiduciary duty between principal and agent, breach of fiduciary duty, and unjust enrichment for Mary Kay’s termination of her distributorship. The U.S. Court of Appeals held that: (1) Ohio employment discrimination statute did not apply to distributor; (2) distributor did not stand in agency relationship to company; (3) company owed no de facto fiduciary duty to distributor; (4) company founder’s oral promises did not create lifetime employment contract with distributor; and (5) distributor could not bring unjust enrichment action against company.