BMK Corp. v. Clayton Corp.

226 S.W.3d 179 (2007)

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BMK Corp. v. Clayton Corp.

Missouri Court of Appeals
226 S.W.3d 179 (2007)

Facts

Jay-Max Sales (Jay-Max) was a distributor that supplied specialized foam to coal mines in the Colorado region. Jay-Max entered a contract with BMK Corporation (plaintiff) pursuant to which BMK agreed to supply Jay-Max with foam for a period of four years. BMK procured the foam from Clayton Corporation (defendant). BMK and Clayton entered a contract requiring Clayton to supply foam to BMK for four years and to refrain from selling foam to mines in the Colorado region. Clayton breached its agreement with BMK by selling foam directly to Colorado mines, and BMK sued, seeking the profits it would have made if Clayton had not breached the agreement. At trial, Jim Boehm, BMK’s chief financial officer, who was also a licensed CPA, testified extensively concerning his calculation of BMK’s lost profits, including explaining in detail the reasoning and assumptions underlying the calculation. Clayton subjected Boehm to rigorous cross-examination and presented its own expert testimony concerning BMK’s claim. The jury found for BMK and awarded $1 million in lost-profit damages. Clayton appealed.

Rule of Law

Issue

Holding and Reasoning (Cohen, J.)

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