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    SmartBrief enables case brief popups that define Key Terms, Doctrines, Acts, Statutes, Amendments and Treatises used in this case.

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    Rockingham County v. Luten Bridge Co.

    Citation:

    35 F.2d 301 (1929)
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    Facts

    On January 7, 1924, the board of commissioners of Rockingham county voted to award to plaintiff a contract for the construction of the bridge in controversy. At one of these meetings, a regularly advertised called meeting held on February 21st, a resolution was unanimously adopted declaring that the contract for the building of the bridge was not legal and valid, and directing the clerk of the board to notify plaintiff that it refused to recognize same as a valid contract, and that plaintiff should proceed no further thereunder. On November 24, 1924, plaintiff instituted this action against Rockingham county, and against Pruitt, Pratt, McCollum, Martin, and Barber, as constituting its board of commissioners. Complaint was filed, setting forth the execution of the contract and the doing of work by plaintiff thereunder, and alleging that for work done up until November 3, 1924, the county was indebted in the sum of $18,301.07. 

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    Q.1 - Which statement most precisely states the measure of recovery endorsed by Luten when the non-breaching party receives an unequivocal repudiation and nonetheless continues performance?
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    Incorrect. Wrong — price actions are a sales-law remedy; Luten is not a UCC seller’s price case.
    Incorrect. Wrong — avoidable consequences must be deducted; continued performance cannot inflate expectancy.
    Correct! Luten pegs damages at the moment of repudiation: the injured party gets pre-repudiation expenditures plus the profit that would have been earned, less costs avoided by stopping, and cannot load the measure with post-repudiation completion costs. The only post-repudiation outlays that survive are genuine wind-down or mitigation expenses that reduce the overall loss.
    Incorrect. Wrong — repudiation does not auto-convert to pure reliance nor bless all expenditures.
    Q.2 - Suppose non-cancellable, job-specific girders were ordered before repudiation but delivered after repudiation, and the contractor promptly stops all other work. Under Luten and Restatement (Second) §§ 347 & 350, which treatment is correct?
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    Correct! Costs locked in before repudiation are not “avoidable” and thus fall within § 350’s allowance and Luten’s ceiling at the breach date; prompt cessation shows compliance with mitigation. The causal chain and unavoidability at the time of repudiation justify recovery despite post-repudiation delivery.
    Incorrect. Wrong — the timing of delivery is irrelevant if the commitment was unavoidable when the duty to mitigate arose.
    Incorrect. Wrong — completion is not required; expectancy is measured at repudiation.
    Incorrect. Wrong — foreseeability is not the gating issue where loss was unavoidable and proximately caused.
    Q.3 - How does Luten interface with the election among expectancy and restitutionary remedies in a way that best reflects modern §§ 370–373 without diluting mitigation?
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    Incorrect. Wrong — Luten does not bar pre-breach restitution; it restricts post-breach augmentation.
    Incorrect. Wrong — post-repudiation work is volunteered and non-compensable.
    Incorrect. Wrong — neither remedy requires completion once repudiation occurs; mitigation, not completion, is the imperative.
    Correct! Luten’s mitigation ceiling coexists with § 373: the promisee may elect restitution for value conferred to the breach or pursue expectancy fixed at repudiation, but cannot recover for voluntary post-repudiation additions. This preserves remedial choice without rewarding wasteful continuation.

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    Topic Resources

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    Melissa A. Hale

    ProfessorMelissa A. Hale

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    Rockingham County v. Luten Bridge Co.