Federal Jury Trial Win Holds Company to Its Promise
A five-day federal jury trial ended with a company having to make good on an oral contract. The Holland & Knight client submitted a business proposal to a company with whom it had done business for over 10 years. The proposal included a recommendation that the company utilize tandem trailers to deliver its product.
The cost savings of the proposal were so significant that after a short trial, the client was asked to build a 10-tractor, 20-trailer fleet to operate. Holland & Knight's client wanted to wait until a final written contract was signed, but the other company promised them that if a final contract was not reached, then the other company would make the client whole for the costs incurred. Even though the client performed under the contract fully, after a corporate reorganization, the other company refused to enter into a written contract, terminated the client, and refused to pay the client's start-up costs.
Once the program was terminated, the client was stuck with equipment that was largely useless and difficult to resell. It was eventually sold at a loss because it had been heavily altered.
After five days of testimony and argument, the jury returned a verdict in favor of the client for approximately $550,000, which was nearly all the start-up costs incurred by the client.
Related Practices