Black Industries, Inc. v. Bush,

110 F.Supp. 801 (1953)

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Nature of the Case

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Facts

Black Industries (P), a drill and machine parts manufacturer, was invited by the Hoover Co. to bid upon certain contracts for anvils, holder primers, and plunger supporters. P assumed the task of obtaining a supplier of these parts. P reached an agreement with D to manufacture 1,300,000 anvils at a price of $4.40 per thousand; 750,000 holder primers at $11.50 per thousand and 700,000 plunger supports at a price of $12 per thousand, all of which were to be made in accordance with government specifications and conformity with certain drawings. P was to service the contract and would be entitled to the difference between D's quotations and the ultimate price. Hoover agreed to purchase the parts from P at a rate of $8.10 per thousand anvils, $16 per thousand holder primers and $21.20 per thousand plunger supports. P's profit on the anvils was 84%, on the holder primers 39%, and on the plunger supports 77% (note the casebook says 68% but that was calculated improperly ((21.20-12)/12= 77%). D failed to complete the order, and P sued for damages of $14,625. D also sued for an additional $4,460.95 on lost business with a similar resale contract with P for Standby Products Company. D moved for summary judgment, alleging among many defenses that the contracts were void as against public policy because P's profits were passed on to the government and the public in the form of increased prices.