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Contracts Keyed to Frier
Campbell v. Tennessee Valley Authority
Citation:
421 F.2d 293 (5th Cir. 1969)Facts
Plaintiff entered into an agreement with Earl Daniel, the director of the technical library at Defendant, to reproduce 13 sets of technical-trade journals on microfilm for $30,240. Daniel did not have the authority to make this purchase for Defendant and entered the contract without the knowledge of his superiors. Plaintiff delivered the microfilm to Defendant and destroyed the journals he had reproduced, pursuant to Daniel’s instructions. The microfilm was placed on the library shelves and available to patrons for two months. The microfilm was then returned to Plaintiff by registered mail with a letter from Daniel stating that he had no authority to enter the contract, that there was no contract, and that the price was excessive. Plaintiff refused to accept the microfilm. Defendant continued to refuse to pay for the microfilm, stored the microfilm, and forbade the microfilm’s use. Plaintiff subsequently sued Defendant, claiming an express contract. The district court granted Defendant’s motion for summary judgment because Daniel had no authority to enter into an express contract for Defendant. Plaintiff amended his complaint to set forth a claim of quantum meruit. At trial, the district court instructed the jury that the proper measure of damages was the fair market value of the microfilm. The jury awarded Plaintiff $30,240. Defendant appealed, arguing that in quantum meruit, the proper measure of damages is the amount by which Defendant actually benefited or was unjustly enriched.
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