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Armstrong v. Bangor Mill Supply Corp. | 145 A. 741 (1929)

A breaching contract party is only liable for reasonably foreseeable damages. In some jurisdictions, the foreseeability of lost profit damages depends on the track record of the business. The 1929 case of Armstrong versus Bangor Mill Supply Corporation provides an example.

Stillman Armstrong owned and operated an established and profitable wood mill in Vanceboro, Maine. One day, the mill’s crankshaft broke, and Armstrong sent it to Bangor, Maine, for repairs at a machine shop owned by Bangor Mill Supply Corporation. When Bangor Supply returned the crankshaft, Armstrong sent it back because it hadn’t been aligned properly. Bangor Supply took six days to fix its mistake, causing Armstrong to shut down his mill during that period.

Armstrong sued Bangor Supply for contract breach, seeking damages for fixed overhead expenses and lost profits.

The jury found for Armstrong, awarding damages for his expenses and lost profits. Bangor Supply filed a motion for a new trial with the Maine Supreme Judicial Court.

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