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Bonanza Restaurant Co. v. Wink

Delaware Superior Court

2012 WL 1415512 (2012)

Facts

Bonanza Restaurant Company (Bonanza) (plaintiff) and Robert Wink (defendant) entered into four franchise agreements under which Wink agreed to establish four restaurants and assign each restaurant to a separate individual. The four assignees were to operate the restaurants and pay royalties to Bonanza based on the restaurants’ sales. Wink agreed to guarantee the royalty payments of any assignee who defaulted. All four of the assignees defaulted,Wink did not honor his guarantee, and Bonanza sued Wink for breach of contract, seeking lost royalties of $1.3 million. Wink moved for summary judgment, arguing that Bonanza was not entitled to recover the lost royalties, because the contract limited damages to “actual damages sustained” and disallowed consequential damages. The trial court ruled on Wink’s motion.

Rule of Law

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Issue

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Holding and Reasoning (Stokes, J.)

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