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Contracts Keyed to Jimenez
Allapattah Services, Inc. v. Exxon Corporation
Facts
Allapattah Services, Inc. and several other dealers (plaintiffs) were working under a business sales contract with Exxon Corporation (Exxon) (defendant). A dispute emerged, and the dealers documented a class-action suit against Exxon for breach of contract. Shortly before trial, the plaintiffs moved to include a claim for punitive damages because Exxon’s breach was in bad faith. Exxon contended (1) that punitive damages were unseemly for a situation based exclusively in the contract as opposed to tort, (2) that adding the case so near trial would be biased, and (3) that the law representing punitive damages fluctuated excessively crosswise over states for a diversity class activity.
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