Crown Battery Mfg. Co. v. Club Car, Inc.

2014 WL 587142 (2014)

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Crown Battery Mfg. Co. v. Club Car, Inc.

United States District Court for the Northern District of Ohio
2014 WL 587142 (2014)

Facts

Crown Battery Manufacturing Company (Crown) (plaintiff) entered into a contract with Club Car, Inc. (defendant). The contract stated that Crown agreed to manufacture at least 12,000 batteries per week. The contract also set forth various terms that both parties would abide by if Club Car agreed to purchase batteries from Crown, but it contained no actual requirement or promise on the part of Club Car to purchase batteries from Crown. Rather, the contract gave Club Car right of first refusal with regard to any batteries Crown might seek to sell. Approximately two years into the contract, Club Car informed Crown that it would no longer purchase batteries from Crown due to alleged defects in the batteries. Crown brought a breach-of-contract claim against Club Car, arguing that the contract was a requirements—or output—contract, and as such obligated Club Car to purchase batteries from Crown. Club Car moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Carr, J.)

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