S & P Brake Supply, Inc. v. Stemco LP
Annotate this CaseS&P Brake Supply, Inc. and STEMCO LP entered into an alleged oral contract for a five-year arrangement to produce and sell remanufactured brakes. S&P later sued STEMCO for breach of contract, among other claims, arguing that STEMCO violated the terms of the parties’ alleged oral contract. STEMCO filed a motion for summary judgment and, when that motion was unsuccessful, a motion for judgment as a matter of law, claiming that the statute of frauds barred the oral contract and that the parol evidence rule precluded evidence of its formation. The district court denied the motions. A jury found for S&P and awarded it damages on the oral agreement. The Supreme Court affirmed, holding that the district court (1) did not err in denying STEMCO’s motion for summary judgment; (2) improperly submitted the question of part performance to the jury but properly submitted S&P’s promissory estoppel claim to the jury; (3) did not prejudicially err in excluding evidence proffered by STEMCO to rebut S&P’s breach of contract and damages claims; and (4) correctly denied costs to STEMCO.
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