Ring Bros. Co. v. Martin Bros. Container & Timber Products Corp.

This appeal arises out of a diversity action in which the appellee was awarded damages resulting from the breach of a logging contract. The principal issues presented on appeal are:

(1) Whether the district court erred in finding a breach of contract in view of the facts and, particularly, the parties’ prior dealings; and, (2) whether the court awarded the appellee excessive damages in view of the contract’s ten-day termination clause. We affirm.

Appellant is an Ohio corporation that operates a sawmill and plywood plant in Oregon. Appellee is an Oregon partnership that is a logging contractor in Oregon. On May 16, 1966, the parties entered into a written contract in which appellee agreed to log approximately ten million feet of appellant’s timber. Ap-pellee was to begin work immediately and would be paid on a per thousand foot basis. The contract was to terminate on December 31, 1967, unless terminated sooner by ten days written notice by either party.

The appellee began the logging operations immediately after the contract was signed, and continued working until November of 1966, when appellant orally requested that operations be halted temporarily. Although appellee made…