CCT Communications, Inc. v. Zone Telecom, Inc.
Annotate this CasePlaintiff entered into a purchase agreement providing that Plaintiff was to provide various telecommunications equipment, software, and services to Defendant for a switch room located in Los Angeles. Defendant later terminated the purchase agreement. Plaintiff filed a complaint claiming breach of contract for Defendant’s failure to pay the amounts owed and account stated. Defendant counterclaimed for, inter alia, breach of contract for Plaintiff’s failure to provide services under the purchase agreement. The trial court entered judgment for Defendant on the complaint and the breach of contract count of the counterclaim. The court later articulated that Plaintiff had breached the purchase agreement. The Supreme Court affirmed, holding that the trial court (1) did not err in concluding that Plaintiff breached the purchase agreement; (2) did not err in finding that Plaintiff failed to prove its breach of contract claim; and (3) properly awarded damages, cost and attorney’s fees in light of a limitation of liability clause in the purchase agreement.
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