Vestar Development II v. General Dynamics Corp.

249 F.3d 958 (2001)

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Vestar Development II v. General Dynamics Corp.

United States Court of Appeals for the Ninth Circuit
249 F.3d 958 (2001)

RW

Facts

Vestar Development II, LLC (Vestar) (plaintiff) and General Dynamics Corporation (General Dynamics) (defendant) agreed to negotiate the terms of a contract under which Vestar would buy a parcel of land from General Dynamics. The agreement set forth the starting point for negotiations and committed the parties to negotiate exclusively with each other for a specified period. General Dynamics breached the agreement by selling the parcel to a third party. In a federal case decided under California law, Vestar sued General Dynamics for the lost future profits of a shopping center it had planned to build on the parcel. The district court dismissed the case on the grounds that it is difficult to enforce an agreement to negotiate when there is no way of knowing to what terms, if any, the parties might have committed themselves had the negotiations proceeded as planned. Vestar appealed to the Ninth Circuit.

Rule of Law

Issue

Holding and Reasoning (Hug, J.)

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