TERADYNE, INC. V. TELEDYNE INDUSTRIES 676 F.2d 865 (1982) CASE BRIEF

TERADYNE, INC. V. TELEDYNE INDUSTRIES

676 F.2d 865 (1982)

NATURE OF THE CASE: This was a dispute over a transistor test system.

FACTS: Teradyne Inc, (P) sold a transistor test system to Teledyne Industries (D) for $98,400. D cancelled the order two days before shipment of the unit. P refused to accept a cancellation. D offered to buy a FET System instead for $65,000 and P refused. After dismantling, testing, and reassembling at an estimated cost of $614, P sold the cancelled unit to another purchaser who was already in the backlog. P sued D and the case was referred to a master whose report was made into a judgment by the district court. P wanted damages to be calculated as the contract price less ascertainable costs saved because of the breach. P used a document prepared for tax purposes to show the court how much it saved because of the breach. D introduced a 10-K report submitted to the SEC indicating that it was a better barometer of costs saved by the breach. The master found for P and awarded the contract price ($98,400) less the costs saved ($22,638) plus incidental damages ($614) less the discount ($984) for an award of $75,392. The master refused an offset for D's offer to purchase another unit. The trial court accepted the master's report and levied both parties to pay half of the master's fee. Both parties appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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