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Laredo Hides Co. v. H & H Meat Products Co.
Texas Court of Civil Appeals
513 S.W.2d 210 (1974)
Laredo Hides Company, Inc. (Laredo) (plaintiff) contracted with H & H Meat Products (H & H) (defendant) to purchase animal hides, a by-product of H & H’s meat processing and packing business. Laredo agreed to purchase all hides generated by H & H’s business between March and December 1972 and then contracted with a tannery in Mexico to sell all of the hides it expected to purchase from H & H. After Laredo and H & H executed their contract, the price of hides increased substantially. When Laredo’s payment after the first two deliveries was delayed in the mail, H & H demanded payment within a few hours and then declared the non-payment a breach of the contract and provided no further hides to Laredo. To meet its obligations to the tannery, Laredo was forced to purchase substitute hides at market price. The difference between the contract price and the price of the substitute goods was $142,254.48. Laredo also incurred increased transportation and handling costs of $3,448.95. The trial court entered judgment for H & H and Laredo appealed.
Rule of Law
Holding and Reasoning (Bissett, J.)
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