Nobs Chemical, U.S.A., Inc. v. Koppers, Co. Inc

616 F.2d 212 (5th Cir. 1980)

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Nature of the Case

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Facts

D contracted with P to purchase 1000 metric tons of cumene. D breached the contract. P sued for breach, and the case was tried before the court without a jury. The district court found that P had arranged to purchase the cumene in Brazil for $400.00 a ton and to expend $45.00 per ton for the cost of transporting the cumene to D, for a total expense of $445,000.00. D agreed to buy the cumene for $540,000.00. The court applied 2-708 and determined that P was entitled to recover their lost profits, $95,000.00. The court held that P could not recover the extra $25.00 per ton they allegedly were forced to pay their Brazilian supplier when the price per ton increased because their total order with the supplier was reduced from 4,000 metric tons to 3,000 metric tons because of D's breach. The court decided this lost quantity discount amounted to consequential damages and was, therefore, not recoverable. Both parties appealed.