Teilhaber Manufacturing Co. v. Unarco Materials Storage

791 P.2d 1164 (1989)

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Teilhaber Manufacturing Co. v. Unarco Materials Storage

Colorado Court of Appeals
791 P.2d 1164 (1989)

SH

Facts

Teilhaber Manufacturing Company (Teilhaber) (plaintiff) and Unarco Materials Storage (Unarco) (defendant) were competitors that both manufactured industrial storage racks. Unarco provided a report to its employees and distributors that claimed to include tests of Teilhaber products, but these were actually tests of a product that was built from a hybrid of components from Teilhaber and another company. Teilhaber filed suit against Unarco for product disparagement. At trial, Teilhaber showed evidence that because its product was sold through independent distributors, it was impossible for it to offer evidence of sales to specific customers that had been lost due to Unarco’s report. Teilhaber also presented evidence of business losses in the form of extensive statistical expert evaluations of Teilhaber’s business patterns and of the business patterns of the market and industry. The jury found in favor of Teilhaber. Unarco appealed on the grounds that the trial court had erroneously allowed the admission of evidence concerning general business damages. Unarco argued on appeal that only special damages may be recovered in a product-disparagement action.

Rule of Law

Issue

Holding and Reasoning (Metzger, J.)

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