Black Industries, Inc. v. Bush

110 F. Supp. 801 (1953)

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Black Industries, Inc. v. Bush

United States District Court for the District of New Jersey
110 F. Supp. 801 (1953)

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Facts

Black Industries, Inc. (Black) (plaintiff) was invited to bid on contracts to supply the Hoover Company with a large order of anvils, primers, and supports. Hoover would then incorporate the parts into machinery being produced under a contract for the United States military. Black signed a subcontractor agreement with George Bush (defendant). Under the agreement, Bush would produce over a million anvils, over 700,000 primers, and 700,000 plungers, each for a fixed price. Black’s obligations were to service the contract and handle all communications with Hoover. The agreement also specified that if Hoover paid more than Bush’s quoted price, Black would receive the difference between Bush’s quote and Hoover’s payment. Hoover’s ultimate purchase price gave Black about an 84 percent profit on the anvils, a 40 percent profit on the primers, and a 70 percent profit on the supports. However, Bush failed to deliver the parts as agreed. Black sued Bush in the United States District Court for the District of New Jersey, alleging that Bush’s breach had caused Black to lose approximately $15,000. Bush moved for summary judgment, alleging that the contract was void on public-policy grounds.

Rule of Law

Issue

Holding and Reasoning (Forman, C.J.)

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