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Kenco Homes Inc. v. Williams

Washington Supreme Court
972 P.2d 125 (1999)


Kenco Homes, Inc. (Kenco) (plaintiff) entered into a contract with Dale Williams and Debi Williams (defendants) for the sale of a mobile home, on the condition that the Williamses obtain financing and approve a bid for site improvements. These two conditions were met, but the Williamses repudiated the transaction before Kenco ordered the mobile home from a factory. The Williamses had already made a $500 down payment. Kenco did not place an order after the Williamses’ repudiation, and Kenco’s only out-of-pocket expense was a minor amount of office overhead. Kenco sued the Williamses for lost profits based on a breach of contract. The trial court found that the Williamses’ reason for repudiating the contract was to take a better deal elsewhere, and that the Williamses were therefore in breach. The trial court further found that Kenco had lost profits in the amount of $11,133 but would be adequately compensated for its damages by retaining the Williamses’ down payment. Kenco appealed on the ground that the trial court had used the wrong measure of damages. The Williamses did not contest the finding of breach of contract on appeal.

Rule of Law


Holding and Reasoning (Morgan, J.)

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