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Contracts Keyed to Kuney
Taylor Equipment, Inc. v. John Deere Co.
Citation:
98 F.3d 1028 (1996).Facts
Midcon was a dealer of John Deere equipment in Sioux Falls, South Dakota and Sioux City, Iowa. In 1990, Deere learned that Midcon had sold equipment “out of trust” when it failed to timely pay Deere for the equipment sales. Deere notified Midcon that its dealership would be terminated and advised Midcon it would allow it to continue as a dealer for up to eighteen months while it found a buyer. Pursuant to the dealership contract, the contract “[could not] be assigned by the Dealer without prior written consent of [Deere].” In the fall of 1991, Midcon entered into a tentative agreement to sell almost all its assets to Interstate Companies of Minnesota, Inc. However, Deere advised Interstate it would not approve the assignment of Midcon’s dealership contract unless Interstate improved its financial strength with additional equity capital. Interstate declined and the assignment was refused. In 1992, Midcon sold its assets to two other companies for $1,715,000 less than the Interstate deal.
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