Neri v. Retail Marine Corp. case brief

Neri v. Retail Marine Corp. case brief summary
285 N.E.2d 311 (1972)

CASE SYNOPSIS

Defendant retail dealer appealed a judgment of Appellate Division of the Supreme Court in the Second Judicial Department (New York), which affirmed a trial court judgment awarding defendant a portion of his counterclaim in plaintiff buyer's action to recover the deposit on a boat after plaintiff changed his mind before taking delivery.

ARGUMENT
Defendant alleged an incorrect assessment of damages under N.Y. U.C.C. Law § 2-708.

DISCUSSION

• The court held that damages had not been properly determined, and that under § 2-708, the correct measure of damages was the loss of profits and incidental damages. 
• Prior law had limited damages to the difference between the contract price and the market price. 
• Under new provisions of the law, if the measure of damages under the difference in price was inadequate to put the seller in as good a position as performance would have done, then the seller was entitled to its profit together with any incidental damages. 
• The court affirmed the order as modified.

CONCLUSION
The court affirmed the lower court's order as modified after reassessing the damages under the Uniform Commercial Code and awarding lost profits plus incidental expenses for repudiation of a contract.


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