Thursday, December 26, 2013

Teradyne, Inc. v. Teledyne Industries case brief

Teradyne, Inc. v. Teledyne Industries case brief summary
676 F.2d 865 (1982)

Appellant buyer sought review of the judgment of the United States District Court for the District of Massachusetts, which granted appellee seller's motion to adopt the master's report allowing it to recover certain damages and denied the motion to require buyer to pay all the master's costs.

Seller sued buyer for damages suffered from the breaking of a sales contract.


  • The court vacated and remanded the district court's award of damages to seller holding that seller was entitled to recover from buyer what Mass. Gen. Laws ch. 106, § 2-708(2) called its expected profit, including reasonable overhead, on the broken contract. 
  • The court held that the master's finding that the statement of costs based on the catalog was reliable was are not clearly erroneous. 
  • The court held that the wages of the testers were not part of overhead and as a direct cost should have been deducted from the contract price. 
  • The court held that seller was not required to mitigate damages by acceptance of buyer's offer to purchase an alternative machine.

The judgment was vacated and remanded so that with respect to the omitted direct labor costs the parties could offer further evidence and the court could make findings with whatever definiteness and accuracy the facts permit.

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