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Contracts Keyed to Fuller
BMC Industries, Inc. v. Barth Industries, Inc.
Citation:
160 F.3d 1322 (1998)Facts
In 1986, BMC Industries contracted with Barth Industries to design, fabricate, and install automated equipment for BMC’s eyeglass lens production line. The contract specified delivery by June 1987, which was later amended to October 1987. Barth experienced numerous technical difficulties and design problems that caused repeated delays. Despite the October 1987 deadline passing, BMC continued to work with Barth, encouraged them to continue the project, and even provided a $100,000 payment in February 1989 to help cover Barth’s cost overruns. In August 1988, BMC executives met with Robert Tomsich, a Barth officer who also served as Nesco’s president, seeking assurance that Barth would complete the project. According to BMC, Tomsich promised that Nesco’s resources were committed to the project. By May 1989, Barth notified BMC that it had completed the mold assembly filling machine and was ready to deliver the equipment. BMC refused delivery and filed suit on June 5, 1989.
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