Santorini Cab Corp. v. Banco Popular North America

999 N.E.2d 46 (2013)

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Nature of the Case

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Facts

P and Banco (D) entered into two contracts for the sale of taxicab medallions. Both contracts contained substantially the same terms, including paragraph 6, which provided that if the parties were unable to obtain final approval from the City of Chicago within 90 days of the date of the parties' contract, D’s sole liability would be to refund P's deposit, and upon such refund, neither party would have any further rights, obligations, or claims against the other. P paid the required earnest money and was financially and otherwise able to purchase the two medallions. Ninety days came and went, but both parties still continued to work together to close the sale. In September 2007, P filed this breach of contract lawsuit alleging that its damages included the appreciation in the value of the medallions and the lost profits it would have derived from ownership of the medallions. D's discovery requests sought specific documents relevant to the basis of the lost profits claim, such as tax returns, financial statements, before-tax revenue, expenses, costs, overhead, and profit. P produced tax returns for 2006 and 2007, and less than 20 checks payable to P in 2008 and 2009. The trial court granted D's motion to compel information concerning lost profits, and D filed a motion to dismiss or, in the alternative, a motion for rule to show cause. In July 2009, the trial court sanctioned P for failing to answer discovery concerning alleged lost profits by barring Santorini from relying on documents and information requested in D's second set of discovery requests that had not been produced. D moved for partial summary judgment on the lost profits claim, and the trial court entered summary judgment precluding lost profits damages. In January 2011, the trial court granted D's motion and held that 'damages for breach of contract will be determined as the difference of the contract at the time of breach and the time of contract; no damages based on the price of medallions at trial are allowed.' The trial court found that D had breached the two contracts. The trial court also ruled that the proper measure of damages was the difference between the market price at the time P learned of the breach and the contract price, plus any consequential damages less expenses saved as a result of the breach. The trial court determined that the average sale price of taxi medallions in Chicago during February 2007 was $66,775. The difference between $66,775 and the $48,000 contract price was $18,775. Accordingly, P's total damages were $37,550. P appealed.