Friday, December 27, 2013

Pittsburgh-Des Moines Steel Co. v. Brookhaven Manor Water Co. case brief

Pittsburgh-Des Moines Steel Co. v. Brookhaven Manor Water Co. case brief summary
532 F.2d 572 (1976)

CASE SYNOPSIS
Plaintiff appealed the entry of a judgment notwithstanding the verdict against plaintiff by a United States district court in a breach of contract action against defendant.

CASE FACTS
Plaintiff appealed from the district court's entry of a judgment notwithstanding the verdict against plaintiff on its complaint for repudiation of the contract and for defendant on its counterclaim for breach of contract and from the district court's adjudgment of damages. The questions raised on appeal were whether the district court erred in entering judgment notwithstanding the verdict in favor of defendant on the liability issue and whether error was committed in the district court's subsequent assessment of damages against plaintiff.

DISCUSSION

  • The decision was affirmed on appeal because defendant was entitled to suspend its own performance by virtue of the anticipatory repudiation by plaintiff and to resort to available remedies, including damages pursuant to the Uniform Commercial Code. 
  • Plaintiff did not have reasonable grounds for insecurity under U.C.C. § 2-609, Ill. Rev. Stat. ch. 26, para. 2-609, and its attempt to interfere with defendant's financing arrangements did not entitle plaintiff to assert anticipatory repudiation of the contract. 
  • Rather, such interference by plaintiff entitled defendant to suspend its own performance by virtue of anticipatory repudiation by plaintiff.

CONCLUSION
The decision was affirmed because defendant was entitled to suspend its own performance due to plaintiff's anticipatory repudiation.

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