Thursday, December 26, 2013

Cosden Oil & Chemical Co. v. Karl O. Helm Aktiengesellschaft case brief

Cosden Oil & Chemical Co. v. Karl O. Helm Aktiengesellschaft case brief summary
736 F.2d 1064 (1984)

Appellant sought review of a decision in the United States District Court for the Northern District of Texas, assessing damages for breach of contract action under Title 1 of the Tex. Bus. & Com. Code Ann. (Vernon 1968 & Supp. 1984).

Appellant seller brought suit for breach of a sales contract by the appellee buyer. The trial court set damages in favor of appellee and offset them by the amount of damages awarded to appellant. Damages were measured at a commercially reasonable time after the appellee learned of the breach by the appellant.


  • On review, the court found that the trial court correctly measured the time period to determine damages. 
  • The court further found no error in the trial court's handing of jury findings, witness testimony, cover prices, trade usage and force majeure provisions. 
  • The court did however find that the trial court erred in making the jury determine what allocations the appellant should have properly made. 
  • The court also found error in the court's failure to award full damages for the breach of two agreements, but affirmed its denial of an award of prejudgment interest to the appellee.

Judgment reversed and remanded for modification as to the awards of damages to appellee for breach of two agreements to appellee, otherwise the awards of the trial court for the breach of the contract between the parties was affirmed.

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