This section contains the nature of the case and procedural background.

Gasoline Products Co. (P) entered into a contract with Champlin (D) to build cross cracking units at D's refinery that would improve the production of gasoline from crude oil. P performed the contracts but a dispute over royalties due ensued. P also entered into additional contracts with P to build more processing equipment. D cross-claimed in that P failed to build a treating system that was part of the additional agreements which by P's failure, D was required to store cracked gasoline awaiting treatment which resulted in costs of storage, plant shut down and lost profits. The jury returned a verdict for P and also for D on his counterclaim leaving a balance in favor of P for which the trial court gave judgment. The Court of Appeals reversed for errors in the charge of the trial court with respect to the damages on the counterclaim but restricted a new trial to the damages issues only. The Supreme Court granted certiorari.

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