National Association Of Postmasters Of The United States v. Hyatt Regency Washington

894 A.2d 471 (2006)

Facts

D agreed to provide blocks of rooms and other amenities for the annual leadership conference held by P. The contract set specific dates for the 2002, 2003, and 2004 conferences. 

The gathering was to be held in mid-February, as it had been for many years. A federal arbitrator, ruling on a collective bargaining agreement between two entities not parties to this appeal or the underlying suit, ordered the U.S. Postal Service to move the 2003 and 2004 Rural Mail Count from its usual time in September to a new time in February. The dates selected by the arbitrator, February 15 through March 15, 2003, and February 14 through March 6, 2004, substantially conflicted with the dates of the 2003 and 2004 P's leadership conferences, which were to be held February 12-21, 2003, and February 11-20, 2004. P learned of the change in dates and that a substantial number of postmasters would be unable to attend the 2003 and 2004 conferences due to the conflicting obligation. On February 7, 2002, P orally informed D that there was a conflict with the 2003 and 2004 dates. D indicated that it would charge increased rates for the days it proposed, but P was unwilling to pay those increased rates. P sent a letter on February 25, 2002, terminating the contract for 2003 and 2004. P sought a declaratory judgment terminating the contract, relying upon a 'For Cause' cancellation clause and also asserting the impracticability of performance. P sued for liquidated damages under the 'Cancellation Option' and sought attorneys' fees and costs. The Superior Court granted judgment in favor of D, and P owed liquidated damages in the amount of $257,617 because it did not strictly comply with the notice requirements of the 'For Cause' cancellation clause. P appealed.