Friday, December 27, 2013

Plotnick v. Pennsylvania Smelting & Refining Co. case brief

Plotnick v. Pennsylvania Smelting & Refining Co. case brief summary
194 F.2d 859 (1952)

CASE SYNOPSIS
Plaintiff seller and defendant buyer both sought review of an order of the District Court for the Eastern District of Pennsylvania, which allowed recovery on both plaintiff's claim for the price of a carload of lead delivered but not paid for, and defendant's counterclaim for damages caused by the seller's failure to deliver the remaining installments covered by the contract.

CASE FACTS
Plaintiff seller and defendant buyer sought review of an order that allowed recovery on both plaintiff's claim and defendant's counterclaim. Plaintiff sued for the price of a carload of lead delivered but not paid for, and defendant counterclaimed for damages caused by the seller's failure to deliver the remaining installments covered by the contract.

DISCUSSION

  • The court concluded that the failure of defendant to make a down payment for the goods delivered, as provided by the parties' contract, constituted a breach of contract. 
  • However, defendant's breach did not justify plaintiff's refusal to ship the balance due under the contract, within the meaning of the Sales Act, 69 Pa. Stat. Ann. 255 (1931), because plaintiff had no valid reason to be fearful that payment would not be forthcoming upon full delivery. 
  • Accordingly, the judgment was affirmed.

CONCLUSION
The court affirmed the judgment because defendant buyer failed to pay for goods delivered, and plaintiff seller failed to establish justification for rescission of the installment contract under the Sales Act.

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