Missouri Furnace Co. v. Cochran
United States Circuit Court for the Western District of Pennsylvania
8 F. 463 (W.D. Pa. 1881)
Cochran (defendant) contracted to deliver 36,621 tons of coke (a type of coal) to Missouri Furnace (plaintiff) at the price off $1.20 per ton. The coke was scheduled to be delivered in installments, 13 tons per day. After delivering 3,765 tons of coke, Cochran notified Missouri Furnace that he would be rescinding the contract and did not deliver any more coke. Subsequently, Missouri Furnace entered into a similar installment contract with Hutchinson for the delivery of 29,587 tons of coke. However, the price on this contract was $4.00 per ton, as this was the prevailing market price for such a forward contract at the time. The market price of coke subsequently fell right after the Hutchinson contract was signed. Missouri Furnace brought suit against Cochran to recover its losses, seeking the difference between the price in the Cochran contract and the price it agreed to pay Hutchinson in that contract. The court found in favor of Missouri Furnace, but only for $22,179, the difference between the price in the Cochran contract and the market price of the coke at the time delivery should have been made on each of the several dates of that installment contract. Missouri Furnace moved for a new trial.
Rule of Law
Holding and Reasoning (Acheson, J.)