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Autotrol Corp. v. Continental Water Systems Corp.

United States Court of Appeals for the Seventh Circuit
918 F.2d 689 (7th Cir. 1990)


Facts

In May 1986, Autotrol Corporation (Autotrol) (plaintiff) and Continental Water Systems Corporation (Continental) (defendant) entered into a contract to manufacture and sell water purification systems. At the time, Autotrol had a record of receiving many new and profitable projects. The next year, Continental terminated the contract. Autotrol sued Continental for breach of contract and prevailed. The jury awarded Autotrol $245,000.00 in out-of-pocket expenses and over $700,000.00 in overhead expenses. Continental appealed, challenging the propriety of the award for overhead expenses.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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