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Management Buzz 06/03

Entrepreneurs benefit from a favorable legal decision; tracking your customer complaints

This story appears in the June 2003 issue of Entrepreneur. Subscribe »

Know Your Limits

Failure to fulfill a contract is just that, and no more, ruled the U.S. Circuit Court of Appeals in California in January. Its decision in Robinson Helicopter Co. Inc. v. Dana Corp. prevented the helicopter manufacturer from raking in damages a lower court had awarded because Dana Corp. had sold Robinson Helicopter Co. Inc. faulty parts and then covered it up. Because other state courts have made similar decisions, the California decision fuels an emerging national precedent, say lawyers on both sides.

The decision is good news for entrepreneurs because it clearly defines the upside and the downside of a contract, says Edwin V. Wood-some Jr., the Los Angeles lawyer whose firm, Howrey Simon Arnold & White, represented Dana Corp.

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