Keystone Bus Lines, Inc. v. Ara Services, Inc.

214 Neb. 813, 336 N.W.2d 555 (1983)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

ARA Services, Inc. (D) purchased school buses and bus routes from Keystone Bus Lines, Inc. (P) after D had been awarded a court-ordered school busing contract. The contract required D to pay $100,000 if D received minimum revenues for the next two years. D experienced difficulty in hiring drivers and could not meet demand; considerable business was lost. D did not meet the minimum revenue levels required to pay P the $100,000. P sued for breach; D had in bad faith caused computed revenues to drop by neglecting certain bus routes. At trial, P showed that D's mismanagement caused the loss of revenue. The court granted a directed verdict for D. P appealed.