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Peace River Seed Co-Operative, Ltd. v. Proseeds Marketing, Inc.

322 P.3d 531, 355 Or. 44 (2014)

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Peace River Seed Co-Operative, Ltd. v. Proseeds Marketing, Inc.

Supreme Court of Oregon

322 P.3d 531, 355 Or. 44 (2014)

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Facts

Peace River Seed Co-Operative (Peace River) (plaintiff) had a fixed-price contract to sell grass seed to Proseeds Marketing (Proseeds) (defendant). Proseeds breached the contract. After the breach, Peace River resold some of the grass seed to other buyers. Peace River brought suit against Proseeds. Under the Oregon Uniform Commercial Code (UCC), there were two distinct remedies for an aggrieved seller. Peace River and Proseeds disagreed on which remedy should apply. Peace River sought to recover the difference between the contract price and the market price of the seed at the contracted time of tender, which is known as market damages. Proseeds argued that Peace River should recover the difference between the contract price and the price Peace River received from the resale of the seeds, which is called resale damages. The trial court found that Peace River was entitled to the lesser of the two remedies and, accordingly, awarded resale damages. The court of appeals reversed, finding that Peace River could recover market damages. Proseeds appealed.

Rule of Law

Issue

Holding and Reasoning (Balmer, C.J.)

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