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Contracts Keyed to Dawson
L. Albert & Son v. Armstrong Rubber Co.
Citation:
178 F.2d 182Facts
Armstrong Co. (Buyer) purchased four “Refiners” from Albert Co. (Seller). Two of the four “Refiners” were delivered in August of 1943, but the other two were not delivered until August or September of 1945. Due to the delay, Armstrong Co. refused to accept all four “Refiners” in October 1945. Albert Co. brought suit against Armstrong Co. for the price of the “Refiners” and Armstrong Co. counterclaimed for breach of contract. The trial court dismissed both claims, but awarded Albert Co. the value without interest of part of the equipment delivered (a motor and accessories). Both parties appealed.
On appeal, the Court found that the Albert Co. was entitled to recover the fair market value of the equipment actually delivered ($4,590) plus interest; however, Armstrong Co. had justifiably rejected the refiners. Armstrong Co. claimed expenses it had incurred in reliance of the promise: (1) investment in a “reclaim department,” $118,478; (2) cost of “rubber scrap,” $27,555.63; (3) cost of the foundation laid for the “Refiners,” $3,000.
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