Eastern Air Lines, Inc. v. McDonnell Douglas Corp.
United States Court of Appeals for the Fifth Circuit
532 F.2d 957 (1976)
Eastern Air Lines (plaintiff) contracted with McDonnell Douglas (MDC) (defendant) for aircraft under a clause excusing delivery delays from events beyond MDC's control, including governmental acts or priorities, but as the Vietnam War escalated, the government informally pressured manufacturers like MDC to prioritize military production without issuing formal directives under the Defense Production Act. MDC complied and delivered Eastern's planes late; a jury found for Eastern, and MDC appealed.
Whether, under a contract excusing delivery delays caused by events beyond the seller's control including governmental acts or priorities, the seller is excused from delays caused by informal government pressure to prioritize military over civilian production during wartime.