Sunday, December 1, 2013

Neumiller Farms, Inc. v. Cornett case brief

Neumiller Farms, Inc. v. Cornett case brief summary
368 So.2d 272 (1979)


CASE SYNOPSIS
Defendant buyer appealed a judgment from the DeKalb Circuit Court (Alabama) entered in favor of plaintiff seller for the buyer's wrongful rejection of the delivery of the seller's goods in violation of Ala. Code § 7-2-703 (1975), and the award of damages for lost profit, including overhead, and for incidental damages under Ala. Code § 7-2-708(2) (1975).

CASE FACTS
The buyer contracted with the seller for 12 loads of potatoes at a price of $ 4.25 per hundredweight. The buyer accepted three loads. When the market price of potatoes dropped to $ 2 per hundredweight, the buyer refused to accept delivery of the remaining loads of potatoes, asserting that the potatoes were not satisfactory. The seller filed an action for breach of contract for wrongfully rejecting goods under Ala. Code § 7-2-703 (1975). The trial court entered judgment in favor of the seller upon a jury verdict, and awarded damages for lost profits, including overhead, and for incidental damages under Ala. Code § 7-2-708(2) (1975).

DICUSSION

  • The court found that there was sufficient evidence that the potatoes were satisfactory and the jury was not required to accept the buyer's subjective claim to the contrary. 
  • The court rejected the buyer's claims that the seller had an obligation to sell those potatoes allocated to the contract. 
  • The sellers were entitled to the damages awarded by jury under § 7-2-708(2) because there was evidence in the record from which the jury could reasonably have concluded that the seller substantially performed and incurred the expenses incidental to performance.

CONCLUSION
The court affirmed the judgment in favor of the seller and the jury's award of damages for lost profit, including overhead, and for incidental damages as a result of the buyer's breach.

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