B&R Textile Corporation v. Paul Rothman Industries Ltd.
New York City Civil Court
101 Misc. 2d 98, 420 N.Y.S.2d 609 (1979)
B & R Textile Corporation (B&R) (plaintiff) agreed to sell 74,077 yards of fabric to Paul Rothman Industries, Ltd. (Paul Rothman) (defendant). Upon delivery, Paul Rothman rejected approximately 36,000 yards of fabric. B&R attempted to mitigate damages by reselling the rejected fabric to other buyers. B&R sold most of the fabric to Dorfler Turk Textiles, Inc., at a price of $0.925, and sold the remainder to various other buyers at similar prices. B&R did not notify Paul Rothman that it would be reselling the fabric. B&R sued Paul Rothman to recover damages. The court awarded damages to B&R using Uniform Commercial Code (UCC) § 2-708(1), which measured damages as the difference between the contract price and the market price. Paul Rothman moved to set aside the judgment and argued that under UCC § 2-706, B&R was required to give notice that it intended to resell the goods and that it failed to do so, meaning that B&R could not recover the difference between the contract price and the resale price.
Rule of Law
Holding and Reasoning (Cahn, J.)
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