Gruber v. S-M News Co.
United States District Court for the Southern District of New York
126 F.Supp. 442 (1954)
Gilbert Gruber (plaintiff) entered into an exclusive dealership agreement with S-M News Co. (S-M) (defendant), whereby S-M was to sell up to 90,000 Christmas card sets produced by Gruber. S-M had never sold Christmas cards before. S-M was to pay Gruber $0.84 for each set delivered. Gruber manufactured the sets, but S-M refused to sell any. Several years later, Gruber managed to sell 40,000 sets at $0.06 per set. Gruber sued S-M for breach of contract. The first trial court dismissed the action at the close of Gruber's case, concluding that the claim was barred by the statute of frauds. The court of appeals reversed and ordered a new trial. At the second trial, Gruber offered evidence that one retailer would have purchased fifty sets of cards from S-M. Gruber requested damages for lost profits or, in the alternative, out-of-pocket expenses. Gruber also presented evidence of labor and materials expenses totaling $19,934.44. S-M argued that Gruber would have lost money even if S-M had performed in full. S-M was found liable for breach of contract. The trial court judge then turned to a determination of the appropriate measure of damages.
Rule of Law
Holding and Reasoning (Murphy, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.