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Penncro Associates, Inc. v. Sprint Spectrum, LP

United States Court of Appeals for the Tenth Circuit
499 F.3d 1151 (2007)


Facts

Penncro Associates, Inc. (plaintiff), contracted to serve as a bill collector for Sprint Spectrum, LP (defendant). The contract forbade recovery of consequential damages, “including . . . lost profits,” in any dispute arising from the contract. Sprint breached the contract. Penncro brought suit, seeking to recover profits lost as a direct result of the breach. Sprint argued that lost profits constituted consequential damages under the contract and that the contract thus barred their recovery. The district court granted Penncro summary judgment. After a trial for damages, the district court awarded Penncro $17 million in damages, including lost profits. Sprint appealed.

Rule of Law

Issue

Holding and Reasoning (Gorsuch, J.)

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