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Management Buzz 06/03 Entrepreneurs benefit from a favorable legal decision; tracking your customer complaints

By Joanne Cleaver

Opinions expressed by Entrepreneur contributors are their own.

Know YourLimits
Failure to fulfill a contract is just that, and no more, ruled theU.S. Circuit Court of Appeals in California in January. Itsdecision in Robinson Helicopter Co. Inc. v. Dana Corp.prevented the helicopter manufacturer from raking in damages alower court had awarded because Dana Corp. had sold RobinsonHelicopter Co. Inc. faulty parts and then covered it up. Becauseother state courts have made similar decisions, the Californiadecision fuels an emerging national precedent, say lawyers on bothsides.

The decision is good news for entrepreneurs because it clearlydefines 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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