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Allied Canners & Packers, Inc. v. Victor Packing Co.
California Court of Appeal
162 Cal. App. 3d 905, 209 Cal.Rptr. 60 (1984)
Victor Packing Co. (Victor) (defendant) had a contract to sell raisins to Allied Canners & Packers (Allied) (plaintiff). Allied planned to resell the raisins to a Japanese buyer, making a four-percent profit. Due to weather conditions and governmental regulations, Victor was unable to deliver the raisins to Allied. However, by that time, raisin prices had tripled. Although Allied had a contract to resell the raisins to the Japanese buyer, Allied did not purchase substitute raisins, and the Japanese buyer never pursued Allied for the missing raisins. Allied sued Victor for breach of contract. Victor conceded the breach, but disputed Allied’s damages calculation. Victor argued that Allied’s actual damages amounted to the four-percent commission that Allied lost on the deal with the Japanese buyer. The commission would have been about $4,000. Allied argued that damages should be calculated as the difference between the contract price and the market price of substitute raisins, which was over $150,000. The trial court declined to award the larger figure based on market damages and only awarded $4,462.50 in actual damages to Allied. Allied appealed.
Rule of Law
Holding and Reasoning (Rouse, J.)
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