Kelsey-Hayes Co. v. Galtaco Redlaw Castings Corp.
United States District Court for the Eastern District of Michigan
749 F.Supp. 794 (1990)
In 1987, Galtaco Redlaw Castings Corp. (Galtaco) (defendant) entered into an agreement to sell castings to Kelsey-Hayes Co. (Kelsey-Hayes) (plaintiff) for use in brake assemblies. The agreement provided prices for the castings. In spring 1989, due to monetary losses, Galtaco offered all of its customers, including Kelsey-Hayes, castings at a 30 percent price increase. Galtaco made it clear that if the price increases were not accepted then it would have to halt production of castings. Kelsey-Hayes contacted six other castings manufacturers, but was unable to find an alternative supplier. Kelsey-Hayes sold the brake assemblies to auto manufacturers, such as Ford, and was Ford’s sole supplier of the brake assemblies. Kelsey-Hayes believed that a halt in castings supply would cause Ford and other manufacturers to have to halt their production. Kelsey-Hayes also believed that such a halt in production would lead to an injured business reputation and subject it to large monetary damages. Kelsey-Hayes entered into a new agreement with Galtaco, which provided for the demanded price increase. Kelsey-Hayes did not expressly reserve a claim for breach of the 1987 agreements. However, when Galtaco made shipments of castings to Kelsey-Hayes, Kelsey-Hayes refused to pay for a specific number of shipments. The total price for that specific number of shipments reflected the price increase that Galtaco demanded under the 1989 agreements. Kelsey-Hayes filed suit in the United States District Court for the Eastern District of Michigan for breach of the 1987 agreements. Galtaco filed a motion for summary judgment.
Rule of Law
Holding and Reasoning (Cohn, 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.