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Riegel Fiber Corp. v. Anderson Gin Co.
United States Court of Appeals for the Fifth Circuit
512 F.2d 784 (1975)
Riegel Fiber Company (Riegel) (plaintiff) entered into a future or forward sales contract with Anderson Gin Co. and Ellis Brothers (ginners) (defendants). The ginners agreed to sell cotton to Riegel at a price of 32 cents per pound. The contract provided that Riegel would purchase “all the acceptable cotton produced during the crop year” from a defined number of acres, and also listed an expected yield of 500 pounds of cotton per acre. In months following the contract, cotton prices rose to 81 cents per pound. Suspecting that the ginners would breach the contract, Riegel sued to have the contract declared valid and to force delivery of the cotton through the doctrine of specific performance. Initially, the trial court entered a preliminary injunction ordering delivery of the cotton, and the ginners complied. However, the trial court later held that the contract between Riegel and the ginners was unenforceable. The court found that the written contract failed to satisfy the statute of frauds because the contract did not adequately specify a quantity. Riegel appealed.
Rule of Law
Holding and Reasoning (Thornberry, J.)
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