Best Construction Co v. Southland Construction Co.
57 Sthld. 362 (2017)
Legal Analysis
Legal analysis from Dean's Law Dictionary will be displayed here.
Nature Of The Case
This section contains the nature of the case and procedural background.
Facts
P and D were both engaged in the construction business. The both use large quantities of construction-grade plywood including ¾-inch waterproof concrete form plywood. Normally this product is purchased at significant discounts in carload lots of 50,000 square feet per car. On June 11, 2015, P discovered it needed a lot more concrete-form plywood on its Security Bank job. P immediately ordered two carloads from a mill at a price of $290 per thousand feet. The delivery was to be 6-8 weeks. Construction was to start on the Bank job in 10 days. P could purchase from a local lumber yard at $360 per thousand. P decided to call its competitors in the business and borrow what it needed from them. They had a course of conduct where even though competitors they at times helped each other out. P called D first. D had just received three car loads and had inventory in excess of what it needed. P and D agreed that P would send trucks to D to acquire not more than 50,000 sq. ft. as needed. In return, P was to return the same quantity and have its employee pile it up as soon as P’s order arrived. D said one good turn deserves another and that P owed D the next time D needed help. P promised D it would help D to the best of its ability when D was in need. On June 19, D called P telling P that D had been offered $352 per thousand on all the plywood it had in inventory by Coastal Lumber and that D would not be able to supply wood to P. During the last half of June, plywood prices rose sharply. P eventually purchased what it needed from 20 different yards at a price of $390 per thousand. P had to pay $1,500 more than it would have had it just purchased last week instead of relying on D’s promise. P sued D claiming $5000 in damages. The trial court awarded P $5000 and D appealed.
Issues
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Holding & Decision
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