Contracts Keyed to Kuney
Linc Equipment Services v. Signal Medical Services
Signal Medical Services, Inc. (Signal) (defendant) leased a magnetic resonance imager (MRI) from Linc Equipment Services, Inc. (Linc) (plaintiff) for $30,000 every month. Signal and Linc were the two traders in the matter of leasing medical equipment. The rent for the MRI excluded consequential damages in any action brought by Signal, however not in activities brought by Linc. The MRI's magnet was damaged when the machine comes back to Linc. The MRI was out of service for 10 months while it was repaired. Linc later sold the repaired MRI for $475,000. Linc sued Signal and the firm that shipped the MRI, looking for, $300,000 in lost rental income for the 10 months that Linc was not able to lease the MRI. The district court found that Illinois law enabled consequential damages to be granted just if the contracting parties "explicitly contemplated" such damages and held that since Signal and Linc did not talk about or consider such damages when going into the rent, the consequential damages of lost rental income couldn't be granted against Signal. Linc appealed.
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