Corenswet, Inc. v. Amana Refrigeration, Inc.

594 F.2d 129 (5th Cir. 1979)

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Nature of the Case

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Facts

Corenswet (P) was a wholesale distributor of appliances. P was an exclusive distributor of Amana (D) appliances in southern Louisiana. The initial agreement was signed in 1969 and had been modified twice in 1971 and 1975. The 1975 agreement modified the termination provision to allow termination by either party at any time for any reason on ten days notice. There was no doubt that P performed its duties at sales increased from $200,000 to over $2.5 million by 1976 with retail outlets increasing from 6 to 72. P was informed in 1976 that D was going to terminate its relations with P because of financial difficulties. A series of negotiations followed in which D made continuous and changing requirements for P to remain a distributor. All of these requirements were met, but as soon as one was done, another and newer requirement was created. D then terminated P. P sued for injunctive relief and damages for a breach of contract. A T.R.O. was issued, and the matter was removed to federal court. A three-day hearing by the court resulted in a finding that D had acted arbitrarily in terminating P. D appealed.