Sierra Nevada Tree

SIERRA NEVADA TREE

DATE: February 21, 2006

TO: Erica Marcus, Supervisor, Sales Department

FROM: JJASFG

RE: Burger Ranch

As you requested, here is an objective report stating the legalities of the issue at hand and calculations of lost profits and damages that Burger Ranch incurred.

Sincerely,

Executive Summary:

In September of 2005 Burger Ranch entered a contract with Sierra Nevada Trees. The contract stated that Sierra Nevada Tree’s had to deliver and decorate Christmas trees at 137 locations that Burger Ranch was operating. On December 2, Sierra delivered and decorated a tree at the Canoga Burger Ranch location. The on-site manager at Burger Ranch was satisfied with the services that Sierra provided and presented Sierra with a company check.

On December 2, the same night of delivery, at 11:37 P.M. a fire broke out at the Canoga Ranch location. After further investigation, it was determined that the Christmas tree decorations had a short due to a lack of electricity fed from the outlet. Due to the fire damages, the Canoga Ranch location was forced to be shut down for 6 months to repair damages.

A full compensation was demanded by Marc Washington, president of Burger Ranch. Mr. Washington first demanded Sierra cover the $464,900 construction cost, and then demanded that Sierra also pay back any lost profits that Burger Ranch could have brought in during the 6 month closed period. Sierra responded by stating that there was a Purchase Order Acknowledgement that stated Sierra Nevada Tree’s is not responsible for any consequential damages caused by the tree. Mr. Washington insisted that since Burger Ranch never signed the POA, and the acknowledgement was not a part of the contact.

SIERRA NEVADA TREE

The purpose of this report is to review the facts of the calamity, involving Sierra Nevada Trees, Inc.’s (Sierra) trees and Burger Ranch, and to determine if, and if so, the amount of damages it owes to Burger Ranch. The report will start with...