#DELCHI ARIELE 2 ISTRUZIONI TRIAL#
On May 23 through this court at the United States Courthouse in Syracuse, New York presided over a non-jury trial in the above-captioned case. 78 CISG does not specify the rate of interest, awarded the buyer prejudgement interest at the United States Treasury Bill rate.Īs to the issue of the exchange rate for converting damages from lire to dollars, the court applied New York 'breach-day rule', whereby damages sustained in foreign currencies are converted as the rate of exchange prevailing on the date of breach. With regard to interest the court, noting that Art. Moreover, the buyer was not entitled to recover the cost of modifying its products for use with the substitute compressors, because the buyer had failed to prove that this cost was a direct result of the seller's breach. 77 CISG, which requires the non-breaching party to mitigate its damages Ĭ) the costs of handling and storage of the non-conforming compressors since the buyer had failed to prove the precise cost, the court granted the buyer a sum amounting to 'a reasonable expense for that purpose' ĭ) damages for lost profit: the court stated in conformity with common law and the law of New York, that the non-breaching party must provide sufficient evidence to estimate the amount of damages with reasonable certainty, and granted the buyer such damages resulting from lost sales of the air conditioners as were foreseeable and a direct result of the breach and determinable with reasonable certainty a mere statement of a witness that he would have ordered more air conditioners had they been available was not considered enough to establish damages with reasonable certainty.Īs to the cost of production the court stated that the buyer was not entitled to recover expenses related to the anticipated costs of production of the air conditioners with the compressors manufactured by the seller, since those costs had already been accounted for in the amount awarded for the lost profits claim. 74 CISG seeks to provide the injured party with the benefit of the bargain, including both its expectation interest and its reliance expenditures.Īs to the amount of damages the court granted the buyer:Ī) damages incurred as a result of the buyer's attempts to cure the non-conformity of the goods, including the costs of subsequent reinspection and testing ī) damages incurred in expediting the shipment and the delivery of compressors that the buyer had previously ordered from a third party: according to the court the buyer was entitled to expedite the shipment under Art.
74 CISG in a sum equal to the loss, including loss of profit, although not in excess of the amount reasonably envisaged by the parties.
The court stated that the seller had breached the contract by failing to supply conforming compressors, and held that the buyer was entitled to recover damages as per Art. The buyer started a legal action to recover damages suffered because of the seller's breach. While the second shipment of compressors was en route in Italy, the buyer discovered that the seller's compressors from the first lot were non-conforming, and so rejected the compressors and cancelled the contract. The seller sent a first shipment of compressors and received the related payment.
#DELCHI ARIELE 2 ISTRUZIONI PORTABLE#
The buyer had informed the seller that the compressors would be used in the production of the buyer's line of portable room air conditioners to be sold some months later.
An Italian buyer and a US seller entered into a contract for the sale of 10,800 compressors to be delivered in 3 installments.