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Contracts Keyed to Farnsworth
Vitex Manufacturing Corp. v. Caribtex Corp
Facts
Plaintiff engaged in the business of chemically shower-proofing imported cloth so that it could be imported duty-free into the United States. Defendant engaged in the business of importing cloth to the Virgin Islands, securing its processing, and exporting to the United States. Plaintiff had closed its plant in the Virgin Islands but reopened it after securing a contract from Defendant. Said contract was found to be legally binding. Plaintiff therefore expended costs to reopen its plant and order chemicals. However, Defendant breached the contract. The trial court found that Plaintiff’s gross profits from the sale would have been $31,250, and its costs would have been $10,136, which left Plaintiff with damages from lost profits of $21,114. Defendant argues that Plaintiff’s overhead expenses should be added to its costs, thereby reducing Plaintiff’s lost profits recovery.
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