Breach of Contract – Summary Judgment

By: Derek Hawkins//October 12, 2020//

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7^th Circuit Court of Appeals

Case Name: Smart Oil, LLC, v. DW Mazel, LLC

Case No.: 19-2542

Officials: MANION, BARRETT, and BRENNAN, Circuit Judges.

Focus: Breach of Contract – Summary Judgment

Smart Oil, LLC agreed to sell thirty parcels of land with gas stations and convenience stores to DW Mazel, LLC (“DWM”). DWM failed to close under the agreement, which by its terms granted Smart Oil the earnest money for the transaction as liquidated damages. But DWM never paid that money, and Smart Oil sued. DWM counter‐ claimed for breach of contract and fraudulent inducement.

The district court granted Smart Oil summary judgment, ruling that DWM breached the agreement by not paying the earnest money, which Smart Oil was entitled to as liquidated damages under Illinois law. The court also ruled that DWM’s counterclaims for breach of contract and fraudulent inducement failed for the same reason. DWM appeals. The district court ruled correctly in all respects, so we affirm.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.

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