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KGM Harvesting Co. v. Fresh Network
Court of Appeal of California
36 Cal. App. 4th 376 (1995)
KGM Harvesting Co. (KGM) (defendant) entered into a contract with Fresh Network (plaintiff) whereby KGM would sell 14 loads of lettuce to Fresh Network each week. When the price of lettuce rose dramatically, KGM refused to sell the lettuce to Fresh Network and sold at market price to third parties. Fresh Network refused to pay for the lettuce it had already received and purchased lettuce on the open market in order to fulfill its obligations to third parties. Fresh Network brought suit for breach of contract. The trial court awarded damages in the amount of the difference between the purchase price and the contract price, minus the value of the lettuce delivered under the contract. KGM appealed.
Rule of Law
Holding and Reasoning (Cottle, P.J.)
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