Valtrol, Inc. v. General Connectors Corp.

WILKINSON, Circuit Judge:

This case involves interpretation of an exclusive distributorship agreement between a national supplier and local distributor of steam trap equipment. We must determine whether the supplier’s cessation of business gives rise to a cause of action for breach of contract or a remedy for recoupment damages. In the absence of contractual intent to the contrary, we hold that the distributor and supplier here together bore the risks and rewards of the joint enterprise. We therefore affirm the district court’s grant of the supplier’s motion for judgment notwithstanding the…