Sprague v. Sumitomo Forestry Company, Limited

709 P.2d 1200 (1985)

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Nature of the Case

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Facts

Sprague (P) entered into a contract with Sumitomo (D) for the sale of logs. Because of difficulties with its sawmill, D canceled the contract. Prior to receiving that cancellation of the contract P sued D for breach of contract. D filed its answer alleging that P had an affirmative duty to mitigate damages. P mitigated his damages by selling the timber to five different purchasers at private sales. At trial, P sought to recover the difference between the contract price and the resale price along with incidental damages. D claimed mutual rescission and also asserted that D failed to proceed as required under 2-702. The jury found the contract price was $197,204 and the resale price was $144,924 with the net contractual damages as $52,280. The jury also found that P sustained incidental damages of $216,498. Those included $39,674 for refinancing, $5,612 for extra transportation, $9,121 for the loss of revenue not covered by the contract, $171,200 the loss of 11 weeks of logging time, and $2,115 for the cost of moving tower. D appealed. D contends that P did not give the requisite notice of intention to resell the goods under 2-706(3) and that P is not entitled to recover the difference in the contract and resale prices.