Tanning Research Laboratories, Inc. v. Don Suntan Corp.

COWART, Judge.

This case involves a dispute as to an interpretation of the following two sentences of a contract:

For purposes of this agreement, the term “net profits derived from sales of suntan lotion products” shall mean the gross sales price of all such suntan lotion products sold, less the cost of such products sold. The cost of the products sold shall include the cost of materials, the cost of direct labor, and overhead, administrative, and selling expenses attributable to the products.

The trial court found the contract to be ambiguous and submitted the interpretation to the jury. In…