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Palmer v. Watson Construction Co.

Minnesota Supreme Court
121 N.W.2d 62 (1963)

Written by Rich Walter, JD

Facts

Watson Construction Company (defendant), a general contractor, subcontracted a project’s excavation work to Ervin Palmer (plaintiff) and compensated Palmer with progress payments as the work proceeded. The payments stopped when Watson determined that Palmer had removed too much dirt, after which Palmer retaliated by ceasing work until such time as Watson resumed the payments. Watson did not budge from its position. Palmer sued Watson for breach of contract. The trial jury returned its verdict for Palmer and awarded him damages for work performed and lost profits. Watson appealed to the Minnesota Supreme Court. As a threshold matter, the court ruled that the trial judge erroneously instructed the jury that Palmer was entitled to recover for lost profits.

Rule of Law

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Issue

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Holding and Reasoning (Sheran, J.)

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