Machinery v. Steel
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Machinery v. Steel | |
Court | West Virginia Supreme Court of Appeals |
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Citation | 384 S.E.2d 139 |
Date decided | July 27, 1989 |
Facts
- Steel of West Virginia = "Steel" = defendant = steel seller
- Machinery Hauling, Inc. = "Machinery" = plaintiff = delivery company for large business loads
- Steel entered into a contract for Machinery to deliver steel for a 3rd-party
- Shelby Steel, Inc. = "Shelby" = the 3rd party located in Louisville, Kentucky
- After the hauling of steel was complete, Steel told Machinery that the 3rd party (Shelby) had rejected the delivery
- Steel blamed Machinery for the defective loads
- A Steel agent demanded Machinery pay up $31,000 or else Steel would discontinue doing business with Machinery
Procedural History
- Machinery sued Steel for extorting money by threatening to sever business relations.
- Machinery lost.
Issues
Can a plaintiff (Machinery) base a claim of economic duress on the expectancy of a future business relationship with the defendant (Steel)?
Arguments
Machinery placed the value of its business relation with Steel at over $1,000,000 (1 million)/year in 1989.
Holding
No. The expectancy of a future business relationship is not a legal right on which a plaintiff may base a claim of economic duress.
Judgment
Case dismissed
Reasons
Justice Miller: The 2 parties weren't under an ongoing contract requiring continued business relations.
Resources
- Video summary at Quimbee
- Case text at CaseText
- Case text at Quimbee video summary
- Case text at v lex