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Contracts Keyed to Marshall
Jewell-Rung Agency, Inc. v. The Haddad Organization, Ltd.
Citation:
814 F. Supp. 337 (1993)Facts
Haddad is a New York corporation that manufactures men’s outerwear sold under the “Lakeland” label. In 1990, Jewell-Rung ordered samples of Lakeland men’s outerwear from Haddad. Haddad supplied Jewell-Rung with the ordered samples, which Jewell-Rung used to obtain orders from customers in Canada. In January of 1991, Jewell-Rung placed an initial purchase order with Haddad for 2,325 garments of Lakeland men’s outerwear. According to Jewell-Rung’s Complaint, Haddad accepted its purchase order in January 1991 with the understanding that Jewell-Rung would obtain an exclusive distributorship of Lakeland outerwear in Canada, but Haddad, after accepting the order, granted a third party, Olympic Pant and Sportswear Co., the exclusive right to sell, manufacture, and market Lakeland outerwear throughout Canada. Plaintiff alleges that Haddad’s acceptance of its January 1991 purchase order created a binding contract, which Haddad subsequently breached by failing to fill the purchase order and entering into its exclusive distributorship agreement with Olympic. Plaintiff further alleges that because it did not learn of Haddad’s alleged breach until February of 1991, it was unable to fill its customers’ orders for Lakeland goods for the Fall 1991 season or to obtain a substitute line of men’s outerwear and, as a result, sustained over $350,000 in damages.
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