Jury Returns Unanimous Verdict for Defendant in $4.5M Bicycle Supply Contract Dispute
Background
In 2021, Hilton Head Bicycle Co. sued Jamis Bicycle Corp., alleging that the defendant breached a bicycle supply contract and caused over $1 million in damages. Hilton Head Bicycle Co. also alleged that the defendant’s breach of contract violated the South Carolina Unfair Trade Practices Act, allowing the plaintiff to seek treble damages and attorney’s fees, which estimated to be $4.5 million. One critical issue at trial was the unforeseen effects of COVID-19 pandemic on the supply chain, and whether it excused the defendant from the alleged breach. Another critical issue involved the plaintiff’s alleged damages, which the defense argued had insufficient documentation and were presented as a homemade list of numbers.
The Verdict
After a six-day trial, the jury returned a unanimous verdict in favor of the defendant, concluding it did not breach the contract, and that the plaintiff was not entitled to any damages. This is one of the few known jury verdicts dealing with the unforeseen effects of COVID-19 and the South Carolina Uniform Commercial Code’s “commercial impracticably” provisions. The verdict is significant in that it clarifies how COVID-19 pandemic affected commercial activities, particularly in the supply chain industry.
The Attorneys
The defendant was represented by Ashley Twombley and Thomas Iandoli of Twenge + Twombley, Beaufort. The plaintiff, on the other hand, was represented by John Bowen of Laughlin & Bowen, Hilton Head.
Analysis
The case highlights the importance of having proper documentation to support damages claims. The plaintiff’s claimed damages were reportedly limited by the trial court judge due to lack of sufficient documentation to back up their claims.
Additionally, the case brings to light the importance of considering unforeseeable circumstances such as the COVID-19 pandemic and its impact on business operations. The defense successfully argued that the pandemic had unforeseeable effects on the supply chain, thereby excusing the defendant from the alleged breach.
Conclusion
The verdict shows the significance of having proper documentation to prove damages claims and considering unforeseeable circumstances such as the COVID-19 pandemic that may impact business operations. Businesses should consult with legal counsel to understand how potential situations may affect their contractual obligations and what steps they can take to mitigate the impact of these situations.
Originally Post From https://sclawyersweekly.com/news/2024/04/07/defense-verdict-jury-turns-back-lawsuit-from-pandemic-inspired-claim/
