Multiplastics, Inc. v. Arch Industries, Inc.
Connecticut Supreme Court
348 A.2d 618 (1974)
- Written by Rich Walter, JD
Facts
Multiplastics, Inc. (plaintiff) contracted to make 40,000 specialized plastic pellets for Arch Industries, Inc. (Arch) (defendant). At the completion of production, Multiplastics was to warehouse the pellets pending Arch’s release orders for delivery at the rate of 1,000 pellets per day. Multiplastics completed production of pellets that conformed to contract specifications, but Arch never submitted any release orders. On August 18, 1971, Multiplastics sent Arch a letter tendering immediate delivery of the pellets and requesting payment and shipping instructions. On August 20, 1971, Arch refused delivery but promised eventual compliance. Over the next month, Arch repeated but never kept this promise. The pellets were destroyed by a warehouse fire on September 22, 1971. Multiplastics’ insurance covered the damage to the warehouse but not the loss of the pellets. Multiplastics sued Arch to recover the pellets’ value. The trial court applied Connecticut’s Uniform Commercial Code (UCC) and entered judgment for Multiplastics. Arch appealed to the Connecticut Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Bogdanski, J.)
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