North American Foreign Trading Corp. v. Direct Mail Specialist

697 F.Supp. 163 (1988)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

Through an exchange of correspondence, the parties agreed that P would supply D with a total of 164,968 blackjack games in minimum monthly installments of 15,000 units at a cost of $12 per unit. D paid a deposit of $100,000 to be applied only to the last shipment. P shipped from May 1983 through August 1983. D paid the contract price of $ 12 per unit for each of these shipments. In September 1983, D requested P delay the monthly shipments until February or March 1984 to allow D to consume its current inventories. P refused to delay shipments, and then D proceeded to cancel the outstanding purchase order for that monthstating that 'no further shipments will be accepted. P sued D and attempted to sell the remaining 104,968 units, but only managed to sell small quantities during the period from September 1983 through mid-1986. In mid-1986, plaintiffs began selling the product in bulk to a single purchaser at a price of $ 11 per unit. All of the units were eventually sold. P still has possession of D's $100,000 deposit. P argues that it would be entitled to recover: (1) the contract price of the goods less the amount realized by P upon resale of the goods, (2) storage and insurance costs and (3) interest at the statutory rate of nine percent (9%) on the full contract price and the storage and insurance costs for the period September, 1983 through the time of resale in mid-1986 and interest on the contract price less the amount received upon resale for the period of mid-1986 through the time of judgment. D claims that P would only be entitled to interest on the net amount of damages, i.e., the contract price plus storage and insurance costs less the amount received upon resale.

Issues

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Holding & Decision

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Legal Analysis

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