Friday, December 27, 2013

Vitex Manufacturing Corp. v. Caribtex Corp. case brief

Vitex Manufacturing Corp. v. Caribtex Corp. case brief summary
377 F.2d 795 (1967)

CASE SYNOPSIS
Appellant cloth importer sought review of a judgment from the United States District Court for the District Court of the Virgin Islands, which found appellant liable for breach of contract and awarded appellee manufacturer damages for loss of profits.

CASE FACTS
A district court, sitting without a jury, determined that appellant breached a contract with appellee and awarded appellee damages for loss of profits. Appellant sought further judicial review, arguing that it was an error for the district court not to consider overhead as part of appellee's costs in determining the amount of profits lost.

DISCUSSION

  • The court stated that there was difficulty in exactly ascertaining appellee's costs when the loss was due to appellant's wrongful conduct in repudiating the contract before performance by appellee. 
  • On appeal, the court concluded that under the facts presented, the district court was not compelled to consider appellee's overhead costs.

CONCLUSION
The court affirmed the lower court and concluded that under the facts presented, the district court was not compelled to consider appellee's overhead costs.


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