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Contracts Keyed to Knapp
Walser v. Toyota Motor Sales, U.S.A., Inc
Facts
The Defendant, Toyota Motor Sales (Defendant), was looking for prospective automobile dealers for its new line of Lexus automobiles. The Defendant contacted the Plaintiff, Walser (Plaintiff), to discuss the possibility of the Plaintiff becoming a Lexus dealer. The Defendant instituted a three-step process to establish its dealerships. First, the prospective dealer had to fill out an application and propose a dealership plan. Then the Defendant would issue a letter of intent containing the final conditions that had to be satisfied before the deal would become final. Finally, when all conditions were satisfied, the Defendant would approve the agreement. After the Plaintiff applied for the dealership, an agent of the Defendant told Plaintiff that its letter of intent had been approved and that “you’re our dealer.” A few days later, the Plaintiff was notified that this was a mistake and that additional financial information was necessary. Ultimately, the Plaintiff was not granted the dealership. However, the Plaintiff’s father had purchased property to be used for the new dealership. The Plaintiff brought suit on a promissory estoppel claim, among others. The jury found for the Plaintiff on the promissory estoppel claim, but limited damages to out-of-pocket expenses. The Plaintiff appealed seeking lost profits from loss of the Lexus dealership.
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