J. O. Hooker & Sons v. Roberts Cabinet Co.

Nature of the Case

This was an appeal from the granting of a summary judgment.

Facts

J.O. Hooker (D) was the general contractor to remove and install cabinets for the Bessemer Public Housing Authority. Hooker hired Roberts Cabinet (P) to remove the cabinets and install new ones. A dispute arose over the required disposition of the removed cabinets and Hooker sent Roberts a fax considering the contract null and void and offered to buy cabinets that Roberts had already installed.

Roberts sued Hooker and the trial court gave summary judgment to Roberts. A trial for damages was held and the jury awarded $42,870. Hooker appealed.

Issue

  1. Does the UCC govern a contract for the installation of cabinets?
  2. Is a party entitled to lost profits on a claim for breach of contract?

Holding and Rule of Law

  1. No. The UCC does not govern a contract for the installation of cabinets.
  2. Yes. A party is entitled to lost profits on a claim for breach of contract.

The contract is a mixed contract but the issue in this breach is one for the services to be performed under the general contract and removal of the old cabinets. As such the UCC does not apply to this contract.

The plaintiff is entitled to be put in the same position he would be in had the breach not occurred. He is entitled to lost profits as though he had performed the contract, but not to those profits lost as a result of his factory being shut down for four days. This would be an excellent measure of consequential damages but not relevant to a determination of lost profits on the contract.

The award of administrative costs is proper but not the award for the storage of the cabinets as that was a fixed cost as Roberts did not have to rent new or additional space as a result of contract performance.

Disposition

Award reduced by $1260.


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