Granato v. Benettiere

246 A.2d 901, 5 Conn. Cir. Ct. 150, 1968 Conn. Cir. LEXIS 182
CourtConnecticut Appellate Court
DecidedJanuary 5, 1968
DocketFile No. CV 12-6606-7710
StatusPublished
Cited by2 cases

This text of 246 A.2d 901 (Granato v. Benettiere) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Granato v. Benettiere, 246 A.2d 901, 5 Conn. Cir. Ct. 150, 1968 Conn. Cir. LEXIS 182 (Colo. Ct. App. 1968).

Opinion

Jacobs, J.

On April 20, 1966, the plaintiff, hereinafter referred to as the operator, and the defendant, whom we shall refer to as the merchant,2 entered into a “Location Agreement” by the terms of which the operator agreed “to install in the merchant’s place of business located at 421 Main Street, city of East Hartford, Connecticut, a coin operated [152]*152cigarette vending machine for a period of five years, from April 22, 1966 [to] April 22, 1971.” The contract called for payment by the operator to the merchant “for each package of cigarettes sold by the equipment and paid for in legal coin, per pack,” payable monthly on or before the 25th day of each month. The contract also contained this provision: “It is expressly agreed that in the event the merchant sells his business or assigns his business or disposes of it in some other way, that he will assign this agreement to such purchaser or new owner subject to the approval of the operator. Upon the assumption of this agreement by the new owner, the merchant herein is released from his agreement. If such new owner or purchaser does not wish to continue under the terms of this agreement, such former owner must pay as liquidated damages the average weekly take of the operator as determined by the receipt slips given to the merchant and also by the copies retained by the operator during the term of this agreement, multiplied by the number of weeks left in the term of this agreement, and this will also apply in the event the merchant breaches his agreement or otherwise removes said operator’s equipment from his premises without notice as herein prescribed.” (Italics supplied.) “The average weekly take” was defined in the contract as “the difference between the net receipts of the operator after subtracting therefrom the wholesale costs of cigarettes and the commission to the merchant.” As part consideration for the location agreement, the operator gave the merchant two checks, each dated the same date and each in the sum of $300, one representing a cash payment and the other representing a loan to be repaid to the operator from expected profits.

Within a period of less than a week after the installation of the cigarette vending machine, the [153]*153merchant, by his then counsel, notified the operator by certified mail dated April 28, 1966, that “Mr. Frank Benettiere [sic], doing business as Willow Inn of 421 Main Street, East Hartford, Connecticut, ... is hereby enclosing your checks totaling $600.00 and is requesting that you remove your machine forthwith” for the reason that the merchant had “a prior contractual agreement . . . and is being held to his contract.” The “prior contractual agreement” referred to a “Lease Agreement” made and entered into on April 6, 1966, between the merchant and Self Service Sales Corporation, under the terms of which the latter was given “the exclusive right to sell cigarettes by vending machines at the location [421 Main Street, East Hartford] . . . for a period of five years.” About a week after the receipt of the letter of April 28, 1966, the operator removed the equipment; meanwhile the vending machine had been “turned around so that it could not be used.”

On May 26, 1966, the operator instituted this action against the merchant for alleged breach of the agreement “by permitting the cigarette vending equipment of a competitor of . . . [operator] to be installed and operated on . . . [merchant’s] premises, and by . . . ordering . . . [operator] to remove his equipment from the premises forthwith, which was done by . . . [operator] on May 17, 1966.”

The trial court found that the merchant had commenced operation of the Willow Inn Restaurant at about the same time he had entered into the contract with the operator, that is, on or about April 20, 1966, and that the merchant had entered into negotiations with a competitor of the operator “a few days prior to April 20, 1966,” for “the installation of a cigarette vending machine on the premises of the restaurant.” These negotiations ultimately [154]*154led to the execution of the contract with the operator’s competitor. The court correctly concluded there was a clear breach of contract.

The court was troubled in its attempt to arrive at just damages for loss of expected profits. Measuring unrealized profits entails extensive problems of proof. The court found no comfort in the formula for the ascertainment of damages as contained in the contract because, as it put it, (a) the breach having occurred so soon after the contract was entered into, no past sales record of the machine was available, thus making it impossible to apply the provision for liquidated damages; and (b) to utilize the formula in the contract, but on the basis of a competitor’s sales record, would be contrary to public policy because the amount recoverable would constitute a penalty. In our view of this case, under the circumstances as we have recited them, to enforce the liquidated damages provision would place impossible burdens on the operator.

The court proceeded to compute damages in this way: It estimated that the vending machine had a fair potential output capacity of 200 packs of cigarettes a week, thereby giving the operator a gross profit of 10 cents a pack, or $20 a week. The estimated cost of service, insurance, depreciation and other incidentals was computed at $5 a week. Thus, the operator’s annual net would amount to $780. The total net over a five-year period of $3900 less the advance payment of $300 which had been returned to the operator left a total net profit of $3600, or an annual profit of $720. The court awarded damages to the operator for a period of two years, a total of $1440, on the ground that this estimate was the most intelligible and probable one permitted by the nature of the case. And, in the exercise of its discretion, the court refused to award [155]*155the operator double costs and reasonable attorneys’ fees.3

By far the most significant question raised by the appeal and the cross appeal which requires our attention is the court’s assessment of damages. The merchant on the cross appeal contends that the parties had in their contract liquidated the damages recoverable in the event of his breach; therefore, he argues, damages “must be [awarded] in accordance with the liquidated damages provision in the contract.” We cannot agree with this proposition. Expected gains were prevented from accruing by the merchant’s wrongdoing; indeed, as we have pointed out, the vending machine had been turned around, so that a meaningful sales record could not be compiled. It was the merchant’s conduct which occasioned the breach. “A defendant whose wrongful conduct has rendered difficult the ascertainment of precise damages suffered by the plaintiff will not be heard to complain that they cannot be measured with the same exactness and precision as would otherwise be possible.” Riley v. General Mills, Inc., 226 F. Sup. 780, 783. “The wrongdoer is not entitled to complain that . . . [damages] cannot be measured with the exactness and precision that would be possible if the case, which he alone is responsible for making, were otherwise.” Story Parchment Co. v. Paterson Co., 282 U.S. 555, 563. “It should not be forgotten, that any uncertainty resulted from defendant’s breach; it would be unfair [156]

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Cite This Page — Counsel Stack

Bluebook (online)
246 A.2d 901, 5 Conn. Cir. Ct. 150, 1968 Conn. Cir. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/granato-v-benettiere-connappct-1968.