CORENSWET, INC. V. AMANA REFRIGERATION, INC.
594 F.2d 129 (5th Cir. 1979)
NATURE OF THE CASE: This was a dispute about the termination of a distributorship. Amana
(D) appealed from a judgment for injunctive relief entered in favor of Corenswet (P), in a
contract dispute.
FACTS: Corenswet (P) was a wholesale distributor of appliances. P was an exclusive
distributor of Amana (D) appliances in southern Louisiana. The initial agreement was signed
in 1969 and had been modified twice in 1971 and 1975. The 1975 agreement modified the
termination provision to allow termination by either party at any time for any reason on ten
days notice. There was no doubt that P performed it duties at sales increased from $200,000
to over $2.5 million by 1976 with retail outlets increasing from 6 to 72. P was informed in
1976 that D was going to terminate its relations with P because of financial difficulties. A
series of negotiations followed in which D made continuous and changing requirements for P
to remain a distributor. All of these requirements were met but as soon as one was done,
another and newer requirement was created. D then terminated P. P sued for injunctive relief
and for damages for a breach of contract. A T.R.O. was issued and the matter was removed to
federal court. A three-day hearing by the court resulted in a finding that D had acted
arbitrarily in terminating P. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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