Best Construction Co v. Southland Construction Co.

57 Sthld. 362 (2017)

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Nature of the Case

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Facts

P and D were both engaged in the construction business. The both use large quantities of construction-grade plywood including ¾-inch waterproof concrete form plywood. Normally this product is purchased at significant discounts in carload lots of 50,000 square feet per car. On June 11, 2015, P discovered it needed a lot more concrete-form plywood on its Security Bank job. P immediately ordered two carloads from a mill at a price of $290 per thousand feet. The delivery was to be 6-8 weeks. Construction was to start on the Bank job in 10 days. P could purchase from a local lumber yard at $360 per thousand. P decided to call its competitors in the business and borrow what it needed from them. They had a course of conduct where even though competitors they at times helped each other out. P called D first. D had just received three car loads and had inventory in excess of what it needed. P and D agreed that P would send trucks to D to acquire not more than 50,000 sq. ft. as needed. In return, P was to return the same quantity and have its employee pile it up as soon as P’s order arrived. D said one good turn deserves another and that P owed D the next time D needed help. P promised D it would help D to the best of its ability when D was in need. On June 19, D called P telling P that D had been offered $352 per thousand on all the plywood it had in inventory by Coastal Lumber and that D would not be able to supply wood to P. During the last half of June, plywood prices rose sharply. P eventually purchased what it needed from 20 different yards at a price of $390 per thousand. P had to pay $1,500 more than it would have had it just purchased last week instead of relying on D’s promise. P sued D claiming $5000 in damages. The trial court awarded P $5000 and D appealed.