FEDERALCourt of Appeals for the Federal Circuit
1998

Coyle's Pest Control, Inc. v. Andrew Cuomo, Secretary of Housing and Urban Development

154 F.3d 1302Court of Appeals for the Federal Circuit • Decided 1998Enforced

HOLDING

Coyle's Pest Control signed a contract with HUD to provide termite control services across Texas counties, but the contract didn't specify a minimum number of properties HUD had to assign. When HUD assigned far fewer properties than expected, Coyle sued for $1.5 million in lost profits. The court ruled the contract was unenforceable as written and said Coyle could only collect payment for work actually performed. This matters because vague contracts without guaranteed minimums leave you exposed to getting little or no work.

KEY FINDINGS

Termination for Convenience

Never sign a contract labeled 'indefinite quantity' unless it includes a written minimum quantity guarantee or exclusive purchasing requirement—otherwise you have no enforceable right to any work

FULL COURT OPINION