T.Co Metals, LLC v. Dempsey Pipe & Supply, Inc.
United States Court of Appeals for the Second Circuit
592 F.3d 329 (2010)
Dempsey Pipe & Supply, Inc. (Dempsey) (plaintiff) entered into two contracts to purchase a total of 2690 short tons of steel pipe from T.Co. Metals, LLC (T.Co) (defendant) for the price of $780 per short ton. The contracts both: (1) contained an arbitration clause and (2) said that T.Co would not be responsible for consequential damages. T.Co fabricated the pipe in Chile and shipped the pipe to Philadelphia. When the pipe was delivered, Dempsey found that much of it was bent. Rather than rejecting the delivery, Dempsey straightened the pipe and resold it for $922 per short ton. Had the pipe been delivered to Dempsey in the condition warranted by T.Co, the resale price would have been $1000 per short ton. When T.Co invoiced Dempsey for the pipe, Dempsey did not pay T.Co in full. T.Co initiated an arbitration against Dempsey for the rest of the contract money. Dempsey counterclaimed T.Co for damages Dempsey had suffered due to the diminished or reduced value of the damaged pipe. Following Uniform Commercial Code (UCC) § 2-714(2), the arbitrator awarded Dempsey diminution-in-value damages of $420,357. T.Co petitioned the district court to have the arbitration award set aside. The district court denied T.Co’s petition. T.Co appealed, arguing that the contracts between the parties barred consequential damages. In response, Dempsey argued that consequential damages do not include the diminution-in-value damages in UCC § 2-714(2).
Rule of Law
Holding and Reasoning (Livingston, J.)
What to do next…
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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
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. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 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.