BEAUFORT, S.C. – A recent trial in Beaufort County Common Pleas court concluded with a unanimous verdict in favor of defendant Jamis Bicycles in a lawsuit filed by Hilton Head Bicycle Co. The plaintiff had alleged breach of contract and violations of the South Carolina Unfair Trade Practices Act, seeking over $1 million in damages. The court case, known as HHBC Inc. v. Jamis Bicycles, centered on the effects of the COVID-19 pandemic on the supply chain and the question of whether these effects excused the alleged breach. The jury ultimately determined that Jamis Bicycles did not breach the contract and awarded no damages to the plaintiff.
Hilton Head Bicycle Co. accused Jamis Bicycles of breaching a bicycle supply contract, which the plaintiff claimed caused them over $1 million in damages. The plaintiff argued that the manner in which the contract was breached violated the South Carolina Unfair Trade Practices Act, entitling them to seek treble damages and attorney’s fees. The total exposure, including possible penalties, was estimated at $4.5 million.
One of the primary issues in the trial was the unforeseen effects of the COVID-19 pandemic on the supply chain and whether this constituted a valid excuse for the alleged breach. This case is noteworthy as one of the few known jury verdicts that address the impact of the pandemic on commercial contracts, specifically in relation to the South Carolina Uniform Commercial Code’s provisions on “commercial impracticability.”
Another significant point of contention centered on the plaintiff’s claimed damages, which were later limited by the trial court judge. When the damages were presented to the jury, the defendant argued that the plaintiff’s claims lacked sufficient documentation and were essentially an unsubstantiated list of numbers. In closing arguments, the plaintiff’s counsel dismissed the list as lacking detailed support.
Ultimately, after a six-day trial, the jury unanimously ruled in favor of Jamis Bicycles, determining that there was no breach of contract and denying the plaintiff any damages. This verdict showcases the complexities and challenges faced by businesses in navigating unforeseen circumstances such as the COVID-19 pandemic and highlights the importance of properly documenting and substantiating damages claims in legal proceedings.