National Controls, Inc. v. Commodore Business Machines, Inc.
California Court of Appeal, First District
209 Cal.Rptr. 636 (1985)
National Controls, Inc. (NCI) (plaintiff), a manufacturer of electronic scales, contracted to sell 900 scales over a period of four months to Commodore Business Machines, Inc. (Commodore) (defendant). After Commodore repudiated the contract by only accepting 50 scales, NCI sold the remaining 850 to National Semiconductor, an existing customer. NCI sued Commodore for breach. At trial, NCI presented evidence that when it manufactured the scales for Commodore, it was operating at just 40 percent production capacity. Commodore was adjudged liable for breach of contract, and NCI was awarded damages in the amount of its lost profits from the Commodore transaction, without any set-off of profits NCI received from the resale to National Semiconductor. Commodore appealed.
Rule of Law
Holding and Reasoning (Scott, J.)
Dissent (Lucas, J.)