AUDIO Case Study – Contract Lessons from Peevyhouse vs Garland Coal & Mining on Damages and Economic Waste

Description

In this episode, we explore the landmark case of Peevyhouse v. Garland Coal & Mining Co. (1963), a case that addresses the issue of damages for breach of contract and introduces the principle of economic waste. This ruling established that when the cost of fulfilling a specific contractual obligation is economically unreasonable, damages may be limited to the diminution in value rather than the cost of full performance. For contract managers, this case underscores the importance of balancing the cost of performance with the economic value to be gained. We’ll break down the case and discuss how to manage performance obligations and damages effectively.