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Ptarmigan Investment Company (Ptarmigan), a partnership, entered into a contract with Gundersons, Inc. (Gundersons), a South Dakota corporation in the business of golf course construction. The contract provided that Gundersons would construct a golf course for Ptarmigan for a contract price of $1,294,129. Gundersons immediately started work and completed about one-third of the work by about three months later, when bad weather forced cessation of most work. Ptarmigan paid Gundersons for the work to that date. In the following spring, Ptarmigan ran out of funds and was unable to pay for the completion of the golf course. Gundersons sued Ptarmigan and its individual partners to recover the lost profits that it would have made on the remaining two-thirds of the contract. Can Gundersons recover these lost profits as damages?
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