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Contracts Keyed to Summers
Pratt Furniture Company v. McBee
Facts
Pratt Furniture Company (Plaintiff), a large furniture wholesaler, entered into a contract with Ivan McBee (Defendant), a sole proprietor, whereby Defendant was to manufacture and sell to Plaintiff 90,000 chairs at $10 per chair. Shortly thereafter, and prior to allocating any resources to Plaintiff’s order, Defendant received an order from Thompson Table Company (TTC) for 50,000 tables at $32 per table. Defendant’s facility could accommodate only one of these orders, and Defendant realized that he could enjoy a sizeable profit by completing TTC’s order instead of the Plaintiff order. As a result, Defendant repudiated the contract with Plaintiff. Defendant’s attorney informed him that he would owe Plaintiff $90,000 in damages, but would still receive an overall $80,000 profit by breaching the agreement with Plaintiff. Plaintiff filed suit to enjoin Defendant from completing the TTC order and for an order of specific performance as to the chairs. In the alternative, Plaintiff sought general damages, restitution, and punitive damages from Defendant’s breach. Defendant argued that several other chair manufacturers in the area could complete Plaintiff’s order, but that only Defendant could make the type of table required by TTC. The trial court denied Plaintiff’s motion for summary judgment, awarded Plaintiff general damages in the amount of $90,000, and denied Plaintiff’s claims for punitive damages and restitution. Plaintiff appealed.
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