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Admiral Plastics Corp. v. Trueblood, Inc.
United States Court of Appeals for the Sixth Circuit
436 F.2d 1335 (1971)
Trueblood, Inc. (defendant) was under contract to build a new type of machine for Admiral Plastics Corporation (Admiral) (plaintiff) to use in making plastic containers, in return for which Admiral made a $29,812.50 down payment, which Trueblood deposited. Trueblood was to deliver the machines by December 1, 1966. Admiral was delinquent in furnishing full and accurate specifications, and Trueblood was delinquent in failing to furnish Admiral with detailed design drawings. After Trueblood missed the deadline and Admiral threatened legal action, Trueblood ceased all work on the machines, but retained Admiral’s down payment. Admiral sued Trueblood in federal district court. Trueblood filed a counterclaim. Each company attributed the breach of contract to the other’s initial failure to cooperate. Ohio law applied to the diversity case. The district court found that neither party acted in good faith nor cooperated in performing the contract, thereby voiding the document. Aside from ordering Trueblood to return Admiral’s down payment, the district court awarded no damages. Both parties appealed to the Sixth Circuit Court of Appeals.
Rule of Law
Holding and Reasoning (Weick, J.)
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