Lads Trucking Co. v. Sears, Roebuck and Co.

MEMORANDUM DECISION RE: ORDER DENYING PRELIMINARY INJUNCTION

STATEMENT OF FACTS

In 1967 Lads Trucking Company (“Lads”) was formed exclusively to service the Sears, Roebuck & Co. (“Sears”) home delivery operation out of one of its three distribution centers for the greater Los An-geles area, located at Chatsworth. The term of the contract was one year and provided that either party could terminate the agreement by giving a 60-day notice to the other party in the event an earlier ending was desired.

For twenty years, the parties continued their relationship by renewing the contract on its anniversary date on the same terms. Lads was to furnish all the trucks and drivers necessary to transport goods sold by Sears to the homes of Sears customers in its area. Until 1985, Lads delivered only for Sears, but since that date, has entered into contracts delivering for other customers in addition to Sears. This did not interfere with the Sears operation.

In 1987 Sears reached a business decision to consolidate all its Los Angeles deliveries into the hands of one carrier and it invited bids from other carriers, including plaintiff, to undertake this enlarged responsibility. Plaintiff…