GRUBER V. S-M NEWS CO.
126 F.Supp.442 (S.D.N.Y. 1954)
NATURE OF THE CASE: This was an action for damages from a breach of contract. Gruber (P)
sought damages for breach of contract from S-M (D), buyer, for a failure to distribute
Christmas cards printed-to-order.
FACTS: Gruber (P) manufactured 90,000 sets of Christmas cards and S-M News Co. (D) was
obligated to sell them through its 700 wholesalers with $.84 per box payment to P. D
distributed the cards to only four wholesalers, P sold 40,000 sets for less than 10% of the
expected price. P sought $101,800 in damages for lost profits and its out-of-pocket
expenses. At trial, P failed to meet the burden of proof for computing his expected lost
profits. P then sought recover for his out-of-pocket expenses made in reliance on D's
promise to perform. D contended that there could be no recovery; if D fully performed there
would have been a loss to P.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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