Riley v. Capital Airlines, Inc.

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Riley v. Capital Airlines, Inc.
Court U.S.D.C., Southern District of Alabama
Citation 185 F. Supp. 165 (1960)
Date decided 1960

Facts

The plaintiff and defendant made a five-year oral contract whereby the plaintiff would deliver to the defendant water methanol for use in jet fuel. Each month the plaintiff would mix the fuel and deliver to the defendant. The defendant refused to receive any more fuel. The defendant contends that if there was a contract then the action is barred by the Statute of Frauds.


Procedural History

Plaintiff seeks for damages for the breach of contract and for merchandise pursuant to the alleged contract.


Issues

  1. Whether a partially performed oral contract is enforceable when it falls under the statute of limitations.
  2. Whether the plaintiff should be compensated for the loss in equipment which was purchased in good faith pursuant to the defendant’s specifications.

Holding

  1. Judgment entered for the defendant.
  2. Judgment entered for the plaintiff so that he will be reimbursed.

Reasoning

  1. The unexecuted portion of the five-year partly performed contract falls within the purview of the statute of frauds and is unenforceable.
  2. The primary measure of damage was the amount of the party’s loss, and the loss was incurred by the plaintiff in the fair endeavor to perform the contract which he assumed, therefore the is entitled to recover.