H. E. Benham v. World Airways, Inc., a Corporation

Defendant World Airways, Inc. (“World”), appeals from a judgment awarding plaintiff Benham damages for repudiation of a contract to form a corporation to engage in a new business venture. World limits its attack on appeal to that part of the judgment awarding $252,435.03 damages for loss of prospective profits and $15,093.38 loss of future wages.

Benham, a Hawaiian resident, and World, a Delaware corporation with its principal office in California, began negotiations in October 1964 to form a new business venture to operate “turn-around services” for airlines at the Honolulu airport. The turn-around services were to consist of “inside” or office services and “outside” or “ramp” services, such as baggage handling, refueling, passenger loading and unloading. At that time Benham owned and operated a small inside services business in Honolulu, the assets of which were then worth about $5000. He also owned 10 percent of the stock of Air Service Corporation (“ASC”). ASC was handling ramp services for about 50 to 60 transits per month. It owned ground equipment valued at about $70,000.

In October of 1964 Benham and World entered a contract in which they agreed that each would…