Runyan v. Pacific Air Industries, Inc.
Supreme Court of California
466 P.2d 682 (1970)
Relevant factsFree
Runyan (plaintiff) quit his job at Tidewater Oil Company to sign a franchise agreement with Pacific Air Industries, Inc. (Pacific) (defendant), paying Pacific $25,000 to own and operate a local franchise. Pacific breached the agreement by failing to properly maintain and supply Runyan's office, so Runyan rescinded the contract and sued. The trial court awarded Runyan his $25,000 payment plus over $5,000 in consequential damages for the income he lost by leaving his Tidewater job, and Pacific appealed the consequential-damages award.
IssueFree
Whether consequential damages are recoverable in an action for rescission.
Related cases
Renner v. Kehl722 P.2d 262 (1986)Sunnyland Farms, Inc. v. Central New Mexico Electrical Cooperative, Inc.301 P.3d 387 (2013)Handicapped Children’s Education Board v. Lukaszewski332 N.W.2d 774 (1983)AM/PM Franchise Assn. v. Atlantic Richfield Co.584 A.2d 915 (1990)Sprague v. Sumitomo Forestry Company104 Wash. 2d 751 (1985)