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Threadgill v. Peabody Coal Co.

Court of Appeals of Colorado
526 P.2d 676 (Colo. App. 1974)


Peabody Coal Company (Peabody) (defendant) entered into an oral contract with Threadgill (plaintiff). Threadgill was to probe test holes, which were drilled by Peabody, in an effort to locate coal. Threadgill’s probing device got stuck in a hole and Peabody employees attempted to recover it. In the coal industry, customarily the coal company reimburses the tester for the cost of lost equipment. Peabody failed to reimburse Threadgill, so Threadgill sued Peabody for negligence and breach of contract. The lower court found that Peabody was not negligent and did not determine whether Threadgill was negligent. However, the lower court did find Peabody liable for breach of contract. Peabody appealed.

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Holding and Reasoning (Pierce, J.)

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