R. E. Davis Chemical Corp. v. Diasonics

924 F.2d 709 (1991)

From our private database of 46,400+ case briefs, written and edited by humans—never with AI.

R. E. Davis Chemical Corp. v. Diasonics

United States Court of Appeals for the Seventh Circuit
924 F.2d 709 (1991)

Facts

Diasonics, Inc. (defendant) manufactured magnetic resonance instruments (MRIs). Diasonics had the ability to make multiple MRIs, but it was new to the market and having difficulty finding buyers. R. E. Davis Chemical Corporation (Davis) (plaintiff) contracted to buy an MRI for $1.5 million from Diasonics, making a $300,000 deposit. Davis later refused to accept or finish paying for the MRI. Diasonics eventually found another buyer and sold the MRI to that buyer for $1.5 million. Diasonics refused to return Davis’s deposit, and Davis sued for its return. Diasonics counterclaimed for the profits that it lost due to Davis’s contract breach. Diasonics claimed that it was a lost-volume seller because it could have made two sales had Davis not breached the sale contract. The trial court found that Diasonics was a lost-volume seller but that it was entitled only to the difference between the contract price to Davis and the MRI’s resale price, which amounted to $0. Diasonics appealed. On appeal, the Seventh Circuit ruled that a lost-volume seller may recover the profits lost due to a breached sale contract. On remand, the trial court found that Diasonics had lost approximately $450,000 in profit due to Davis’s breach. Thus, Diasonics could keep Davis’s deposit, and Davis had to pay an additional $150,000. Davis appealed, arguing that Diasonics could not recover its profits because it had not specifically identified who bought the MRI that was originally intended for Davis.

Rule of Law

Issue

Holding and Reasoning (Cudahy, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,400 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,400 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership