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Keywords

contractbreach of contractplaintiffdefendantdamagesattorneyaffidavitmotionsummary judgmentcontractual obligation

contractplaintiffdefendantaffidavitpleamotionsummary judgmentwillcontractual obligation

Related Cases

Great Western Sugar Co. v. Mrs. Allison’s Cookie Co., 563 F.Supp. 430, 36 UCC Rep.Serv. 164

Facts

In October 1980, each defendant entered into separate contracts with Great Western Sugar Company to purchase sugar at a specified price. The defendants claimed that the price was modified to the daily selling price, while the plaintiff contended that no such modification occurred. After the defendants made purchases based on the alleged modifications, the plaintiff asserted that the defendants were in breach of contract.

In October of 1980 each defendant entered into a separate contract with plaintiff whereby each defendant agreed to purchase from plaintiff a specified amount of sugar, measured in hundredweights, and plaintiff agreed to sell the same to each defendant for $47.00 per hundredweight.

Issue

Did the defendants breach their contracts with the plaintiff, and were the defendants entitled to summary judgment on the grounds that they had fulfilled their contractual obligations?

Rule

Summary judgment is only appropriate when there is no disputed issue of material fact, and all evidence must be viewed in the light most favorable to the party opposing the motion. Additionally, the Uniform Commercial Code allows for recovery of lost profits and incidental damages under certain conditions.

The Eighth Circuit has frequently admonished that summary judgment is an extreme remedy. It should be granted only if the pleadings, affidavits, and admissions show that there is no disputed issue of material fact and that the plaintiff is not entitled to recover under any circumstances.

Analysis

The court determined that there were genuine issues of fact regarding whether the price modifications were communicated and accepted, and whether the defendants reasonably believed their contracts had been modified. This uncertainty meant that summary judgment was inappropriate. Furthermore, the court noted that the plaintiff could amend its complaint to include claims for special damages, as the interests of justice would be served.

In particular, there remain genuine issues of fact pertaining to whether Walton had the authority to modify the first quarter contracts, whether Walton communicated said price modifications to Talbot with instructions for Talbot to so notify defendants, and whether defendants reasonably believed that their contracts had been modified and authorized by plaintiff.

Conclusion

The court denied the defendants' motions for summary judgment and granted in part and denied in part their motions to strike the affidavit. The court allowed the plaintiff to amend its complaint regarding special damages but ruled that attorney fees were not recoverable.

Therefore, summary judgment is inappropriate.

Who won?

The plaintiff, Great Western Sugar Company, prevailed in that the court denied the defendants' motions for summary judgment and allowed the amendment of the complaint regarding special damages.

Defendants' motions for summary judgment will be denied.

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