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Cowin Equipment Co. v. General Motors Corp.

United States Court of Appeals for the Eleventh Circuit
734 F.2d 1581 (1984)


Facts

Cowin Equipment Company, Inc. (Cowin) (plaintiff) sold Terex-brand heavy equipment manufactured by General Motors Corporation (GMC) (defendant). In 1978. anticipating an increase in demand for Terex equipment, GMC required Cowin and other Terex dealers to place non-cancellable advance orders for Terex equipment. Previously, GMC had allowed liberal cancellation. Cowin ordered 44 Terex machines following the imposition of this requirement, but then attempted to cancel due to an economic downturn. GMC refused to allow cancellation and delivered all of the machines as ordered, leaving Cowin with excess inventory. Cowin sued in December 1980 and sought damages on the ground that the contract terms were unconscionable. The damages sought were for interest on the loans to buy the equipment, insurance on the equipment, storage and maintenance fees, and loss incurred by the sale of equipment below purchase price. GMC moved for summary judgment. The district court, viewing the case as a Uniform Commercial Code (UCC) unconscionability action for damages, denied summary judgment. GMC appealed.

Rule of Law

Issue

Holding and Reasoning (Roney, J.)

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