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Keywords

contractbreach of contractdamagestrialverdictcontractual obligationdeliberation
contractappealtrialverdict

Related Cases

Capital Steel Co., Inc. v. Foster and Creighton Co., 264 Ark. 683, 574 S.W.2d 256, 25 UCC Rep.Serv. 1349

Facts

F & C Construction Company entered into a contract with Capital Steel to supply approximately 1,229,030 pounds of steel for a highway bridge at Camden. After a delay in delivery, Capital Steel failed to provide the steel at the agreed price, leading F & C to purchase the steel from another supplier at a higher price, resulting in a loss of $63,909.56. The trial court found that F & C's request for delivery was made within a reasonable time frame, and Capital Steel's claims of unreasonable delay were unfounded.

F & C's contract with the state highway department was for the construction of the steel and concrete superstructure of a bridge at Camden.

Issue

Did the trial court err in directing a verdict for F & C regarding the damages caused by Capital Steel's failure to perform under the contract?

On the direct appeal the only question is whether the trial judge was right in directing a verdict for F & C in the amount sued for.

Rule

The court applied the principle that a seller is liable for damages resulting from a breach of contract when the buyer has acted within a reasonable time frame in requesting performance.

The trial court held, however, that F & C acted within a reasonable time, because its request for delivery of the steel was within the time that F & C could perform its contract with the highway department without penalty.

Analysis

The court determined that F & C's delay in directing the delivery of steel was reasonable given the timeline of the construction project and the nature of the work involved. Capital Steel's claims of unreasonable delay were dismissed as the evidence showed that F & C's actions were consistent with the timeline required to complete the bridge without incurring penalties. The court also found that the damages claimed by F & C were straightforward and did not require jury deliberation.

The undisputed evidence supports the trial court's conclusion.

Conclusion

The court affirmed the trial court's decision, holding that F & C was entitled to the damages claimed due to Capital Steel's breach of contract.

We conclude on the direct appeal that the trial court was right in directing a verdict for F & C.

Who won?

F & C Construction Company prevailed in the case because the court found that Capital Steel was liable for failing to perform its contractual obligations.

The jury's verdict for Capital Steel on the counterclaim was for $17,250.

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