Wed. Jun 16th, 2021

Appellant partners challenged the ruling of the Superior Court of San Diego County (California) awarding damages to respondent employee for unilateral termination of a contract to haul garbage for the city for 10 years.

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Overview

Appellant partners entered into a contract with respondent to employ him to haul, for 10 years, garbage collected by the city. When appellees ceased to continue the terms of the contact before the term ended, respondent employee brought suit. The lower court ruled that appellant partners were liable for damages under the contract. Appellant partners challenged the ruling, claiming that there was no consideration, the contract was not binding, and respondent had breached the contract. Taking the contract as a whole, and construing all of its terms together, the court found that the contract was mutual and bilateral, and the intention was to engage respondent to haul city garbage for the full term of the contract. The court found no breach by respondent. Accordingly, the court affirmed the ruling of the trial court, although it modified the amount of damages to which respondent was entitled.

Outcome

The court affirmed the ruling below that held that appellant partners were liable under a contract, for damages to respondent, but the court modified the amount of the damage award.

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