Nature of the Case
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Facts
D and her late husband operated a gas station and automobile repair shop. P and D executed an agreement where P would supply gasoline to D for a five-year period. D was required to purchase a minimum of 2,000,000 gallons 'in substantially equal monthly quantities' during that period. The agreement provided for interest-free financing of improvements to the service station in the amount of $40,000, to be paid off at the rate of two cents per gallon from the gasoline sales. P also advanced D an emergency loan of approximately $26,000 for environmental clean-up, which was to be repaid in 1993. D's husband died in 1994, and she closed the automobile repair part of the service station. Gasoline sales declined. D could not purchase all the gas under the agreement and was unable to make the payments on the construction loan as anticipated from the gasoline sales. In January 2000, D purchased another brand of gasoline which she commingled with the Texaco fuel. P ceased delivery and demanded full payment of the outstanding account balance. P sued for unpaid invoices, balance of the loans, and lost profits. P got a judgment in the amount of $56,149.90 for unpaid gasoline invoices and the outstanding balance of the loans, and $30,415.95 for lost profits. The court declined to apply the four-year statute of limitations for the sale of goods. The court found that P was a lost volume seller and entitled to lost profit of five cents per gallon on 608,319 gallons. Both parties appealed.
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