Case Summary: In re Bubble Up Delaware, Inc., 684 F.2d 1259 (C.A.9 (Cal.) 1982)

Category : Case Summaries, Contract

Key Holding: Ninth Circuit held that Courts will not construe contractual stipulations as conditions precedent unless required to do so by the plain, unambiguous language of the contract.

Background: Bubble Up Delaware, Inc. (‘Bubble Up’) filed for bankruptcy in 1970. The US Dept. of Labor (“DOL”) filed a proof of claim for damages arising from breach of contract in the amount of $700,000. The contract in question required DOL to provide Bubble Up with $1,000,000 in exchange for Bubble Up’s employment of 300 unemployed residents of Los Angeles, CA for a period of nine months. Continue Reading