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Contracts Keyed to Blum
United Airlines, Inc. v. Good Taste, Inc.
Citation:
982 P.2d 1259 (1999)Facts
In 1987, Defendants contacted Plaintiff to bid on an in-flight catering contract. After Defendant’s invitation, Plaintiff entered into discussions with Defendant regarding the contract and obligations of the parties. In March 1988, Plaintiff was awarded the catering contract. After winning the contract, and to meet Defendant’s expectations, Plaintiff expanded and spent about one million dollars. In May 1989, Defendant gave Plaintiff a ninety-day notice of termination notifying Plaintiff that its performance under the Agreement would terminate in August 1989.
Plaintiff alleges that Defendant’s contract representative, Groth, assured Plaintiff that Defendant had never used the ninety-day termination provision and that the condition was only an “out” if Defendant ever decided to no longer fly to Anchorage. Plaintiff claims that it would not have expanded at the risk of a no-cause ninety-day termination notice without Groth’s allegedly fraudulent representations regarding the restrictions of the termination provision. Defendant did not dispute those facts but stated during oral argument that Groth would testify that he never made such statements.
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