EASTERN AIRLINES, INC. V. McDONNELL DOUGLAS CORP.
532 F.2d 957 (5th Cir. 1976)
NATURE OF THE CASE: This was an appeal from a judgment awarding damages from a breach of
contract.
FACTS: Eastern (P) contracted with McDonnell (D) to purchase jets. The contract took into
account the Defense Production Act; the government could issue orders to manufacturers to
give priority to military production. Instead of invoking the DPA provisions, the government
made offers to manufacturers they just couldn't refuse; to give the U.S. priority or formal
directives would be issued. Deliveries to P were delayed because of this back door arm
twisting. P sued to obtain damages from D for the late deliveries. The trial court awarded P
damages. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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