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Chatlos Systems, Inc. v. National Cash Register Corp.

United States Court of Appeals for the Third Circuit
670 F.2d 1304 (1982)


Chatlos Systems, Inc. (Chatlos) (plaintiff) purchased an NCR 399/656 computer system for $46,020 from National Cash Register Corp. (NCR) (defendant). NCR warranted that the computer system would perform specified functions that were required by Chatlos. The computer system did not perform those functions, and Chatlos sued NCR for breach of its warranties. Chatlos introduced evidence from an expert that the value of a computer system that would perform all of the functions warranted by NCR would be in the $100,000 to $150,000 range. Additionally, two of NCR’s employees testified. One employee testified that Chatlos should be offered an NCR 8200 based on the requirements of Chatlos. The other employee testified that the NCR 8200 computer system was two levels above the system sold to Chatlos in sophistication and price. Based on this evidence, the trial court awarded Chatlos $201,826.50 plus prejudgment interest. NCR appealed to the United States Court of Appeals for the Third Circuit.

Rule of Law


Holding and Reasoning (Per Curiam)

Dissent (Rosenn, J.)

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