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Contracts Keyed to Murphy
Hydraform Products Corp. v. America Steel & Aluminum Corp
Facts
Plaintiff contracted with Defendant to buy steel for Plaintiff’s business. The contract was for enough steel to make 400 wood burning stoves. Several of the shipments were late and of inadequate quality. Defendant’s efforts to correct these errors were insufficient and Plaintiff was only able to produce 250 wood burning stoves. As a result, Plaintiff sold the business. Defendant had, as part of its contract, a clause stating that Defendant was not liable for consequential damages. Plaintiff sued Defendant. Defendant moved to dismiss the claim for consequential damages arguing that Plaintiff had failed to mitigate the damages. Defendant’s motion was denied. The court also ruled the limitation on damages clause was unenforceable.
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