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Contracts Keyed to Burton
Vitex Mfg. Corp. v. Caribtex Corp.
Citation:377 F.2d 795
At the time surrounding the contract at issue, there were high tariff barriers to the importation of foreign wool products. If the goods were imported to the Virgin Islands and certain processing requirements were met, then the high tariffs could be avoided. Vitex Manufacturing Corporation (hereinafter “Vitex”) (plaintiff) maintained a plant in the Virgin Islands, but later closed it due to a lack of business. Caribtex Corporation (hereinafter “Caribtex”) (defendant) acquired some wool and contracted with Vitex to reopen the plant to process the wool. Caribtex, however, failed to deliver the wool to be processed at the plant. Vitex sued Caribtex for breach of contract. At trial, damages were calculated by subtracting the costs for processing the wool from the gross profits Vitex would have earned had Caribtex not breached.
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