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D & G Stout, Inc. v. Bacardi Imports, Inc.

United States Court of Appeals for the Seventh Circuit
923 F.2d 566 (7th Cir 1991)



D & G Stout (D & G) (plaintiff) was Bacardi Imports, Inc. (Bacardi’s) (defendant) wholesale distributor. Two of D & G’s major suppliers, accounting for more than fifty percent of its sales, withdrew their lines. David Stout, the president of D & G, sought assurances from Bacardi about its commitment to D & G. Bacardi assured Stout that it was committed to D & G. At the same time, Stout was also approached by National Wine & Spirits Company regarding purchasing D & G, and Stout agreed to enter into negotiations. Stout again sought assurances from Bacardi, which confirmed its commitment. Stout informed Bacardi that he intended to reject National’s offer. Bacardi then withdrew its line from D & G. Subsequently D & G’s other major supplier withdrew its line and D & G’s employees left for other distributors. National again offered to purchase D & G, but at a price $550,000 lower than the earlier offer. D & G sued Bacardi, claiming Bacardi was liable under promissory estoppel for the lower purchase price. The court entered summary judgment in Bacardi’s favor. D & G appealed.

Rule of Law


Holding and Reasoning (Cudahy, J.)

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