CHASE PRECAST CORP. V. JOHN J. PAONESSA CO. INC.
409 Mass. 371, 566 N.E.2d 603 (1991).
NATURE OF THE CASE: Chase (P) sought review from a decision which affirmed a trial court
verdict of no cause of action in favor of Paonessa (D).
FACTS: Massachusetts entered into two contracts with Paonessa (D) to replace a median
strip. D contracted with Chase (P) to supply the concrete median barriers under two
contracts. P produced one-half of the barriers, and then 100 residents brought a halt to the
project because they objected to the removal of the grass median strips and their
replacement with concrete median barriers. P became aware of the protests on June 1st.
Citizens filed an action in Superior Court on June 6th. On June 7, 1983, D notified P by
letter to stop producing the barriers. P stopped production on June 8th. An out of court
settlement was reached and no additional concrete median barriers were to be installed. D
paid P for all the barriers it had produced at the contract price and P in fact suffered no
out of pocket losses. P then sued D for its anticipated profit on the barriers called for in
the contract but not produced. D obtained a judgment based on impossibility of performance.
The appeals court affirmed but noted that the doctrine of frustration of purpose was a more
accurate theory of recovery. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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