Collins v. Lewis

Collins (plaintiff) agreed to fund construction of a cafeteria while Lewis (defendant) managed construction and operations, guaranteeing Collins fixed minimum repayments; costs ballooned from an estimated $300,000 to $600,000, and once open the cafeteria's expenses outpaced receipts, prompting Collins to threaten to cut off funding unless Lewis made it immediately profitable. Collins sued for judicial dissolution; the jury found there was no reasonable expectation of profit if Lewis continued managing, but that absent Collins's own conduct there would have been a reasonable expectation of profit, and that Lewis was competent to manage the business.