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Security Store & Manufacturing Co. v. American Railways Express Co.

Missouri Court of Appeals (1932) | 51 S.W.2d 572; 227 Mo. App. 175; 1932 Mo. App. LEXIS 129

4 min read

TL;DR: A company shipped an exhibit to a convention, but a key part arrived late, making the exhibit useless. The court awarded the company its wasted expenses (reliance damages) because any potential lost profits were too speculative to calculate.

Legal Significance: Establishes that when expectation damages (like lost profits) are too speculative, a plaintiff may recover reliance damages—expenses incurred in preparation for or performance of the contract—to compensate for a breach.