Transportation & Transit Associates, Inc. v. Morrison Knudsen Corp.
United States Court of Appeals for the Seventh Circuit
255 F.3d 397 (2001)
MKC (defendant) promised subcontractor TTA (plaintiff) at least $15 million in business over five years, with proportional reduction if MKC "lost" railcar projects, but after suffering major losses, MKC divested its entire transit division to Amerail without TTA's consent, and Amerail then failed to provide TTA the contractually required business; TTA sued both, obtaining a default judgment against Amerail, and the district court granted TTA summary judgment against MKC for stipulated damages.
Whether an assignment of a contract relieves the assignor of its duties under the contract if the promisee does not consent to the assignment and the assignee does not perform those duties.