SPRAGUE V. SUMITOMO FORESTRY COMPANY, LIMITED 709 P.2d 1200 (1985) CASE BRIEF

SPRAGUE V. SUMITOMO FORESTRY COMPANY, LIMITED

709 P.2d 1200 (1985)

NATURE OF THE CASE: This was a dispute over damages from a breached goods contract for lumber. Sumitomo (D) sought review of a judgment, which was in favor of Sprague (P), timber sellers, in their action for breach of contract that arose from D's unconditional cancellation of a log purchase contract. D contends that P did not give the notice of intention to resell the canceled goods required by Wash. Rev. Code 62A.2-706(3) of the Uniform Commercial Code.

FACTS: Sprague (P) entered into a contract with Sumitomo (D) for the sale of logs. Because of difficulties with its sawmill, D cancelled the contract. Prior to receiving that cancellation of the contract P sued D for breach of contract. D filed its answer alleging that P had an affirmative duty to mitigate damages. P mitigated his damages by selling the timber to five different purchasers at private sales. At trial, P sought to recover the difference between the contract price and the resale price along with incidental damages. D claimed mutual rescission and also asserted that D failed to proceed as required under 2-702. The jury found the contract price was $197,204 and the resale price was $144,924 with the net contractual damages as $52,280. The jury also found that P sustained incidental damages of $216,498. Those included $39,674 for refinancing, $5,612 for extra transportation, $9,121 for the loss of revenue not covered by the contract, $171,200 the loss of 11 weeks of logging time, and $2,115 for the cost of moving tower. D appealed. D contends that P did not give the requisite notice of intention to resell the goods under 2-706(3) and that P is not entitled to recover the difference in the contract and resale prices.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

Get free access to the entire content for Mac, PC or Online

for 2-3 days and free samples of all kinds of products.

https://bsmsphd.com

© 2007-2016 Abn Study Partner