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Deep Drilling Company shipped its only heavy duty pump to U.S. Pumps (the pump’s manufacturer) for repairs. Deep Drilling hired Speedy Transport, Inc. to deliver the pump to U.S. Pumps and then return it to Deep Drilling as soon as the repairs were completed. Since Deep Drilling only had one pump, it had to suspend operations while that pump was being repaired - although this information was never communicated to Speedy Transport. Deep Drilling expected that it would be without the pump for five days, and that it would lose profits of $25,000 because of this shutdown. U.S. Pumps quickly repaired the pump, and informed Speedy Transport that the pump was ready for pick up. However, Speedy did not immediately return to pick up the pump. When the pump was not returned to Deep Drilling by the end of the fifth day, Deep Drilling rented a pump from Rent-A-Pump at a cost of $5,000 per day. It took Speedy Transport an additional five days to finally pick up the pump and deliver it back to Deep Drilling – which resulted in Deep Drilling having to rent a pump for five days. How would the court rule if Deep Drilling files a lawsuit against Speedy Transport? What additional facts would be important in this case, and why? If Deep Drilling did prevail at trial, what types of damage award(s) would be appropriate in this case? Compensatory? Consequential? Punitive? Why? Is there anything that each of the parties could or should have done to prevent this situation from occurring? Discuss and explain you answer in detail!
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