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Granvia Trading Ltd. v. Sutton Creations, Inc.

United States District Court for the Southern District of New York
2010 WL 4630266 (2010)


Facts

New York importer Sutton Creations, Inc. (defendant) contracted to buy coats from Korean exporter Granvia Trading Ltd. (plaintiff). The coats were routine, ordinary garments with a wide market, not custom specialized goods. Granvia contracted a Chinese manufacturer to make the coats. The parties understood that Sutton would accept delivery by having its freight-forwarder pick up the shipment from the Chinese manufactory. When the coats were ready for pick-up, Granvia e-mailed Sutton. Sutton did not respond or pay for the coats, and the manufacturer invoiced Granvia for storage. E-mails showed that Sutton was still trying to coordinate delivery. Meanwhile, Granvia contacted buyers, unsuccessfully attempting to sell the coats. Eventually, Granvia brought an action against Sutton for the full purchase price under § 2-709(1) of New York’s Uniform Commercial Code (UCC). Both sides moved for summary judgment. Granvia argued that Sutton failed to accept shipment, and reasonable attempts to sell the coats had failed. Sutton countered that Granvia had not suffered any recoverable losses because it never paid the manufacturer, could only recover lost profits as a jobber, and made merely cursory attempts to resell the coats, which still had a market value over the purchase price.

Rule of Law

Issue

Holding and Reasoning (Sand, J.)

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