Sunrise Foods International Inc. v. Ryan Hinton Inc.

2019 WL 3755499 (2019)

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Sunrise Foods International Inc. v. Ryan Hinton Inc.

United States District Court for the District of Idaho
2019 WL 3755499 (2019)

  • Written by Tammy Boggs, JD

Facts

American company Ryan Hinton Inc. (Hinton) (defendant) contracted to purchase 6,000 tons of corn at $415 per ton for a total of $2.49 million from a Canadian company, Sunrise Foods International (Sunrise) (plaintiff). Hinton paid for 334 tons, or $138,610, under the contract and then breached by refusing to pay anymore. Thereafter, the market price of corn dropped. Sunrise was able to sell the remaining corn to other customers for $2,237,584, or $113,806 less than what Hinton was required to pay. Sunrise sued Hinton in an action governed by the Convention on Contracts for the International Sale of Goods (CISG). In addition to the difference between the contract and resale price, Sunrise argued that it was entitled to recover damages for lost profit on the transaction and lost profit as a lost-volume seller. Sunrise claimed that it priced products to earn a profit margin of $30 per ton sold. Sunrise moved for summary judgment on an award of damages.

Rule of Law

Issue

Holding and Reasoning (Dale, J.)

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