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Contracts Keyed to Murray
Doering Equipment Co. v. John Deere Co.
Facts
Doering Equipment Co. (Plaintiff) agreed to act as distributor for golf and turf products from John Deere Co. (Defendant). Plaintiff lost money every year on its performance of the contract. Defendant allegedly told Plaintiff that it needed to purchase additional golf and turf products and add a salesperson for those products, and that these requirements were non-negotiable. Plaintiff notified Defendant that it was terminating the agreement. Plaintiff sued Defendant for a breach of the covenant of good faith and fair dealing, and sought $500,000 in damages for its operating losses under the contract during the previous three years. The trial court found in Defendant’s favor, holding that there was no causal connection between Plaintiff’s damage claims and the additional demands Defendant made on Plaintiff. Plaintiff appealed.
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