Rainbow Court Case Summary

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The Issue
Was the district court’s decision of awarding $37,500 in damages to Rainbow’s goodwill and $5,493.10 for breach of contract based on requirement of foreseeability and/or of reasonable certainty? Should Rainbow be awarded prejudgment interest on the damage award?
The Rule
The law that has been associated with this case is Alleging Breach of Contract and Fraud in the District Court for the Western District of Oklahoma. Which later went to United States Court of Appeals, Tenth Circuit.
The Analysis
Treatment of Reservation
The spring of 1986, Rainbow (a travel agency based in Oklahoma City, Oklahoma) was organizing many tour packages for Oklahoma football fans who wanted to attend a University football game between them and the University of Miami. The game was scheduled for September 26, 1986, in Miami, Florida. Therefore, Rainbow contacted Fontainebleau Hilton (a deluxe resort hotel in Miami Beach, Florida) to possibly reserve rooms for Rainbow’s groups. After there was mutuality between the parties, two contracts were sent out by Fontainebleau for Rainbow to reserve the hotel rooms. One of these contracts was meant to reserve one hundred and five rooms for Rainbow on the weekend of September 27, 1986. The second contract indicated that forty-five rooms were to be reserved for Rainbow on
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When it came to Rainbow’s goodwill, the defendant-appellants argued that $37,500 was an unreasonable amount. The damages for breach of contract which totaled to $5,493.10 for breach of contract was not supported by the evidence according to the defendants-appellants. The next argument was that there was insufficient amount of evidence to support the jury’s verdict on fraud.
Appellee/Cross-Appellant: Prejudgment

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