Reliance Cooperage Corp. v. Treat

195 F.2d 977 (8th Cir.1952).

Dawson, p. 58

 

Facts: The plaintiff contracted with the defendant to buy staves[1].The defendant breached the contract and the plaintiff sued, asking for the difference between the contract price and the market price of staves on the last agreeable date of delivery.The trial court awarded the plaintiff damages mitigated by the fact that the plaintiff could have purchased similar staves before the contract period was over.

 

Issue: To what damages is the plaintiff entitled?

 

Rule: The doctrine of anticipatory breach by repudiation is meant to help the injured party and thus does not apply when it helps the breaching party.

 

Analysis: The court says that you donít need to mitigate damages until you have actually incurred those damages.In theory, the defendant could have performed the contract any time up to the final date of delivery.

 

Conclusion: The judgment of the trial court was reversed.

 

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[1] Boards with which to make barrels to hold bourbon