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

ARA Services, Inc. (D) purchased school buses and bus routes from Keystone Bus Lines, Inc. (P) after D had been awarded a court-ordered school busing contract. The contract required D to pay $100,000 if D received minimum revenues for the next two years. D experienced difficulty in hiring drivers and could not meet demand; considerable business was lost. D did not meet the minimum revenue levels required to pay P the $100,000. P sued for breach; D had in bad faith caused computed revenues to drop by neglecting certain bus routes. At trial, P showed that D's mismanagement caused the loss of revenue. The court granted a directed verdict for D. P appealed.

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