Continental Grain Co. v. Simpson Feed Co.

102 F. Supp. 354 (E.D. of Ark. 1951)

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Nature of the Case

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Facts

Continental Grain (P) and Simpson (D) entered into a contract where P agreed to buy 10,000 bushels of soybeans at $2.20 per bushel. Delivery was to be from October 1, until November 30, 1950. The first shipment was carried off, and nothing of any particular happened outside the normal trade practices. The second shipment incurred problems in that P had trouble relaying information regarding the delivery instructions. Because of this problem, D decided to consider the contract breached. P insisted on performance, but D refused. The carload of beans was stuck while waiting for instructions, and the railroad insisted that the car be moved or unloaded and D billed it out to others customers but before it could be moved P sent and D received instructions from P for the movement of the same carload of beans. P sent letters to D asking for performance, and during this time the price of the soybeans rose steadily. There was no material difference in price between November 30 and December 1. On December 1, P purchased 8000 bushels of beans for D's account and then sued to recover the price difference plus interest. At trial, D claimed the delay in shipping instructions was a substantial breach of contract. The jury was deadlocked, and P filed a motion for a directed verdict.