Sterling v. Gregory

A.E. Sterling (plaintiff), who owned three orange groves, agreed that A. Gregory (defendant) would buy all of Sterling's Upper Orchard oranges at a set price and would separately handle, pack, ship, and sell all the oranges from Sterling's other two groves, the Triangle and Klondike. Sterling then broke that second promise by selling the Triangle and Klondike oranges to other buyers instead. Gregory stopped buying Upper Orchard oranges once Sterling did this, and Sterling had to sell the rest of his Upper Orchard crop elsewhere at a lower price. Sterling sued Gregory for the price difference, arguing the Upper Orchard deal was a separate, independent contract; Gregory argued all three groves were part of one indivisible agreement, with the above-market Upper Orchard price serving as consideration for handling the other two groves. The trial court ruled for Gregory, and Sterling appealed.