Chase Precast Corp. v. John J. Paonessa Co. Inc.

409 Mass. 371, 566 N.E.2d 603 (1991).

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Nature of the Case

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Facts

Massachusetts entered into two contracts with Paonessa (D) to replace a median strip. D contracted with Chase (P) to supply the concrete median barriers under two contracts. P produced one-half of the barriers, and then 100 residents brought a halt to the project because they objected to the removal of the grass median strips and their replacement with concrete median barriers. P became aware of the protests on June 1^st. Citizens filed an action in Superior Court on June 6^th. On June 7, 1983, D notified P by letter to stop producing the barriers. P stopped production on June 8^th. An out of court settlement was reached, and no additional concrete median barriers were to be installed. D paid P for all the barriers it had produced at the contract price, and P, in fact, suffered no out of pocket losses. P then sued D for its anticipated profit on the barriers called for in the contract but not produced. D obtained a judgment based on impossibility of performance. The appeals court affirmed but noted that the doctrine of frustration of purpose was a more accurate theory of recovery. P appealed.