Tuesday, December 3, 2013

Riley v. Capital Airlines, Inc. case brief

Riley v. Capital Airlines, Inc. case brief summary
185 F. Supp. 165 (1960)


CASE SYNOPSIS
Plaintiff, in action for breach of an oral contract under Alabama law, alleged that defendant airline breached a five-year contract to supply water methanol to defendant for use in turbo-prop jet aircraft.

CASE FACTS
Plaintiff proprietorship sued defendant airline for breach of an alleged oral contract. Plaintiff contended that he was given a five-year contract to supply water methanol to defendant for use in turbo-prop jet aircraft. Defendant denied that it entered into a five-year contract and argued that, if there was a contract, plaintiff's claim was barred by the statute of frauds, 20 Ala. Code § 3.

DISCUSSION

  • In its conclusions of law, the court held that each delivery under the oral contract fell outside the statute of frauds and was enforceable, but the executory portion of the five-year contract fell within the statute of frauds and was unenforceable. 
  • The court held that plaintiff was not entitled to recover for breach of the executory portion of the contract, but was entitled to compensation for losses incurred in purchasing equipment to perform the contract.

CONCLUSION
The court held that plaintiff was not entitled to recover for breach of the executory portion of its contract with defendant, but was entitled to compensation for losses incurred in purchasing equipment to perform the contract.

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