Temco Corporation v. Itel Rail Corporation. return to the top

In this case, Mr. Leydig's client found itself between a rock and a hard place. The client had agreed to sell 65 railcars to a third party in reliance on Itel's oral promise to first sell those 65 railcars to the client. When Itel refused to acknowledge the existence of its oral promise, the client was unable to perform on its contract to sell to the third party. The third party sued Mr. Leydig's client for breach of contract, and sought damages in excess of $1,000,000. Mr. Leydig sued Itel on behalf of the client and a jury trial ensued. The jury returned a verdict for the client, finding that there was in fact an oral contract and that Itel had breached it. Following that verdict, Itel paid in full the claims of the frustrated third party buyer.