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Contracts Keyed to Frier
Karl Wendt Farm Equipment Co. v. International Harvester Co.
Citation:
931 F.2d 1112 (6th Cir. 1991)Facts
Plaintiff entered a dealer-franchise agreement with Defendant, under which Defendant could make changes in product lines. The contract also provided for termination for cause. Defendant had similar agreements across the country. Due to an economic downturn, Defendant was facing bankruptcy. Defendant lost almost $2,000,000 per day under its dealer agreements. To avoid this, Defendant sold part of the company, resulting in a breach of its agreement with Plaintiff. Plaintiff sued. Defendant raised the defenses of impracticability and frustration of purpose. Defendant also alleged that the contract allowed its termination under the circumstances and that there was an implied termination clause. Plaintiff moved for a directed verdict. The impracticability defense went to trial. The jury found in Defendant’s favor. Plaintiff moved for judgment notwithstanding the verdict, which was denied. Plaintiff appealed, and Defendant cross-appealed.
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