Glenn Distributors Corp. v. Carlisle Plastics, Inc.

Glenn Distributors Corp. (Glenn) (plaintiff) operated a business that purchased various items from manufacturers for resale. One such wholesale item was Ruffies trash bags, which Glenn had been purchasing from Carlisle Plastics, Inc. (Carlisle) (defendant), the manufacturer, pursuant to a contract. Carlisle failed to deliver Glenn’s $250,000 order of trash bags. Glenn never made a payment for the order, and it attempted to find replacement trash bags to recoup its lost profits. Glenn filed suit for breach of contract, seeking damages in the form of lost profits. Glenn Segal, president and founder of Glenn, testified to the efforts he undertook to mitigate damages and recover lost profits. According to Segal, he went to trade shows and spoke to salespeople to see whether he could find Ruffies or other supermarket brands. Segal testified that he could not find supermarket brands at the close-out prices he was seeking. The only two options available, according to Segal, were purchasing from Carlisle or buying goods from a supermarket at a higher price. Segal did not identify any salespeople with whom he spoke, and he was unable to provide details about prices and availability. Although Glenn did not have any written agreements with its purchasers, Segal was certain that he would have been able to sell additional trash bags based on his selling history. There was no mention of what Glenn did with the $250,000 that it had allocated for the contract. A jury returned a verdict in favor of Glenn in the amount of $230,000 for lost profits, finding that Glenn proved, to a reasonable degree of certainty, its lost profits from goods it ordered but did not receive. Carlisle moved for judgment as a matter of law.