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Tongish v. Thomas

Kansas Supreme Court

251 Kan. 728, 840 P.2d 471 (1992)

Facts

Decatur Coop Association (Coop) (plaintiff) contracted with a farmer, Dennis Tongish (defendant), to purchase the sunflower seeds that Tongish grew on his farm. Pursuant to a contract with Bambino Bean & Seed, Coop planned to resell the seeds for the same price plus a handling fee which constituted Coop’s profit in the transaction. Following the first delivery to Coop, the price of sunflower seeds increased to double the contract price and Tongish refused to deliver the remaining seeds as agreed. Tongish instead sold the seeds to another purchaser for $5,153 more than the contract price and Coop sued Tongish for breach. The trial court awarded Coop $455 in damages, based on the amount of the handling charge he would have earned from the transaction absent Tongish’s breach. Coop appealed. The appellate court reversed the trial court ruling finding that the measure of damages should have been based on the market price under Section 2-713 of the Uniform Commercial Code, rather than Coop’s actual loss. Tongish appealed the appellate court’s ruling.

Rule of Law

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Issue

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Holding and Reasoning (McFarland, J.)

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