Dist. Ct. did not err in entering $33,765.52 judgment in favor of defendant on its counterclaim, alleging that plaintiff breached contract calling for defendant’s purchase of 6,500 cylinders from plaintiff, where plaintiff could only tender 4,663 cylinders to defendant. Contract called for $150,000 in withheld purchase finds for possibility that plaintiff could not produce 6,500 cylinders, and Dist. Ct. could properly find that plaintiff was not entitled to any of withheld funds, since: (1) actual audit indicated that plaintiff possessed only 4,663 cylinders; and (2) record showed that plaintiff would not be entitled to any of withheld funds if less than 5,300 cylinders were delivered to defendant. Moreover, defendant was entitled to all of $150,000 in withheld funds, as well as additional $33,765.52, which represented amount of cylinders that fell short of 5,300 threshold. Ct. rejected plaintiff’s contention that: (1) it was entitled to entire $150,000 in withheld funds because audit took longer to complete than deadline set forth in contract; and (2) defendant was required to conduct physical audit of all cylinders.
Federal 7th Circuit Court
Civil Court
Contracts