Kingston Pipe Industries v. Champlain Sprinkler
Vermont Supreme Court
857 A.2d 767 (2004)
Kingston Pipe Industries, Inc. (Kingston) (plaintiff) delivered sprinkler pipes to Champlain Sprinkler, Inc. (Champlain) (defendant). When Champlain discovered that the pipes were defective but that timely replacements were unavailable from other suppliers, Champlain notified Kingston that Champlain would accept the pipes but deduct the cost of making necessary repairs. The repairs proved to be unexpectedly troublesome. Champlain presented Kingston with an itemized bill showing that the repair costs offset whatever Champlain owed Kingston for the pipes. Kingston sued Champlain under Vermont’s Uniform Commercial Code (UCC). The trial court ruled that because Champlain knowingly accepted Kingston’s defective pipes, UCC § 2-607 entitled Kingston to collect the full contract price for the pipes. The court also ruled that Champlain failed to meet procedural rules for pleading offsetting damages for the pipes’ defects. Champlain appealed the trial court’s summary judgment for Kingston to the Vermont Supreme Court.
Rule of Law
Holding and Reasoning (Amestoy, C.J.)
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