American Iron Metal Co. v. U.S. Ferrous Trading Division, Tube City Division

2007 WL 1125682 (2007)

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American Iron Metal Co. v. U.S. Ferrous Trading Division, Tube City Division

United States District Court for the District of Connecticut
2007 WL 1125682 (2007)

Facts

American Iron Metal Company, Inc. (AIM) was in the business of selling scrap metal. U.S. Ferrous Trading Division, Tube City Division (Tube City) was in the business of reselling scrap metal to third parties. The two companies’ top managers held discussions in which they verbally agreed that, for a price of $305 per metric ton, AIM would sell 35,000 metric tons of scrap metal to Tube City, which would then resell the metal to an Egyptian company. The Egyptians later broke off their talks with Tube City, and AIM had to sell its scrap metal at a loss. AIM sued Tube City in federal district court under Connecticut’s version of the Uniform Commercial Code (UCC). The only written evidence of any contract between AIM and Tube City were two emails that Tube City’s manager sent his AIM counterpart following their verbal discussions. The emails described the agreed sale and purchase of “about 30–35,000” tons of scrap for resale to an Egyptian buyer but omitted other points covered in the discussions. Tube City moved to dismiss on the grounds that the emails failed to satisfy the UCC’s statute of frauds in that the emails failed to (1) identify the parties to the contract, (2) describe the method and terms of payment, or (3) indicate that the parties had finalized their agreement.

Rule of Law

Issue

Holding and Reasoning (Dorsey, J.)

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