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Keywords

damagestrial

plaintiffdamagestrialappellant

Related Cases

R. E. B., Inc. v. Ralston Purina Co., 525 F.2d 749, 20 Fed.R.Serv.2d 1181, 18 UCC Rep.Serv. 122

Facts

R.E.B., Inc. operated a hog ranch producing purebred hogs and claimed that Ralston Purina provided defective feed from August 1, 1970, to April 1, 1971, which caused injuries and deaths among its hogs, leading to significant financial losses. The case had previously been before the court, where Ralston was found liable for breach of warranty, and the trial court had failed to instruct on damages. After remand, R.E.B. amended its complaint to redefine its damages, resulting in a jury award of $262,000.

The allegations of plaintiff R.E.B., Inc. are that it operated a hog ranch that produced purebred hogs for fattening and breeding purposes; that during the period commencing about August 1, 1970, and continuing to April 1, 1971, Ralston Purina, appellant herein, furnished defective feed to it; that the defective feed injured its animals, whereby some of them died and others were unable to conceive and produce offspring, while others gave birth to stillborn offspring.

Issue

Did the trial court err in allowing recovery for both loss of future profits and diminution in the sale value of the hog farm, potentially leading to double recovery?

Reversal is here sought on the following grounds: 1. The trial court's allowing recovery for both loss of future profits as well as diminution in the sale value of the hog farm. The argument is that this permitted a double recovery.

Rule

Under the Wyoming Uniform Commercial Code, damages for breach of warranty can include both lost profits and diminished market value, provided they are proven with reasonable certainty and do not result in double recovery.

On account of the breach, R.E.B., Inc. is entitled to recover the loss resulting in the ordinary course of events ‘. . . as determined in any manner which is reasonable.’ Ordinarily damages would be measured by the difference ‘between the value of the goods accepted and the value they would have had if they had been as warranted.’ s 34—2—714(2) and where applicable ‘. . . any incidental and consequential damages.’ s 34—2—714(3).

Analysis

The court found that the trial court did not abuse its discretion in allowing the amendments to the complaint and that the damages awarded were recoverable under the UCC. However, it noted that the jury's instructions allowed for overlapping damages, which could lead to double recovery. The court emphasized that lost profits should only be calculated for the period during which the defective feed was used, and any future profits should be considered as part of the diminished market value.

In sum we are unable to see any merit to the contention that these heads of damage were outside the contemplation or anticipation of the appellant. Rather, in our view the troublesome problem is that which arises from the submission without limitation of both loss of profits and diminution of property value of the business.

Conclusion

The court affirmed the trial court's judgment but required a remittitur to reduce the damages awarded to avoid double recovery, ultimately adjusting the award to $190,109.

In conclusion we hold that the judgment of the district court should be affirmed with the exception of the approval of the jury award of damages insofar as they were overlapping.

Who won?

R.E.B., Inc. prevailed in the case as the court upheld its claims for damages, although it required a reduction to avoid double recovery.

The trial court did not abuse its discretion in either allowing the particular amendments or in doing so after remand.

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