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Kamco Supply Corp. v. On the Right Track, LLC

Supreme Court of New York, Appellate Division
49 N.Y.S.3d 721 (2017)


Facts

Kamco Supply Corporation (plaintiff) contracted to purchase a certain amount of the Trakloc partitioning system from On the Right Track, LLC (OTRT) (defendant). The agreement required Kamco to buy a minimum of 164.4 million linear feet of Trakloc during 2006, including at least eight million linear feet each month. Kamco did not meet any of the monthly minimum requirements. In April or May 2006, Kamco informed OTRT that it could not possibly meet the required minimums and suggested terminating the agreement. However, OTRT did not wish to terminate the agreement, instead opting to continue the agreement with hopes that sales would increase. OTRT also bought back $47,709.92 worth of Trakloc at that time. OTRT did not give Kamco formal notice that it believed Kamco was in default. In November 2006, Kamco sued for breach of contract, and OTRT countersued for Kamco’s failure to meet the minimum-purchase requirements. The trial court ruled in favor of Kamco on the counterclaims, finding that OTRT waived the minimum requirements. OTRT appealed.

Rule of Law

Issue

Holding and Reasoning (Chambers, J.)

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