Doolim Corp. v. R Doll, LLC

2009 WL 1514913 (2009)

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Doolim Corp. v. R Doll, LLC

United States District Court for the Southern District of New York
2009 WL 1514913 (2009)

RW

Facts

South Korea’s Doolim Corporation (plaintiff) contracted to sell garments imprinted with trademarks owned by R Doll, LLC (Doll) (defendant), an American firm, and deliver them to Doll in three successive lots. Because both South Korea and the United States were signatory to the United Nations’ Convention on Contracts for the International Sale of Goods (CISG), the contract was governed by CISG law. Doolim delivered, and Doll accepted, the first two lots of garments. Doll never paid Doolim for either lot, even after Doolim relaxed the contract’s payment terms. When Doll broke its promise to abide by the modified payment terms, Doolim canceled delivery of the third lot and sued Doll for breach of contract, as defined by the CISG, in a United States district court. Doolim sought to recover the full contract price, not only for the first two lots that Doolim delivered, but also for the undelivered third lot that Doolim retained. Doolim claimed that it could not resell the third lot without violating Doll’s trademark rights.

Rule of Law

Issue

Holding and Reasoning (Pitman, J.)

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