Gorco Construction Co. v. Stein
Minnesota Supreme Court
256 Minn. 476 (1959)
- Written by Rich Walter, JD
Facts
Gorco Construction Company (plaintiff) and Stein (defendant) signed a construction contract that contained a liquidated-damages clause. The clause stipulated that, should Stein breach the contract, he would pay 15 percent of the contracted-for amount to cover the costs of Gorco’s project-related sales, overhead, advertising, labor, and equipment. Stein canceled the project before any work began, and Gorco sued him for breaching the contract. There was no trial evidence as to Gorco’s actual project-related expenses. The trial judge instructed jury members that if they found a contract to have existed, they must award Gorco the 15 percent liquidated damages, which is what the jury did. Stein appealed to the Minnesota Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Matson, J.)
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