Superl Sequoia Limited v. The Carlson Company, Inc.

Dist. Ct. did not err in finding that plaintiff breached contract with defendant by furnishing some defective furniture for use in department store displays and by not delivering other furniture, which caused defendant to either replace or repair said items. However, Dist. Ct. erred in calculating defendant’s damages where: (1) email between parties indicated that defendant could only charge plaintiff its out-of-pocket costs, as opposed to said costs plus defendant’s overhead and costs of capital; and (2) other portions of same email indicated that plaintiff was entitled to $3.4 million bid price that included its markup when subtracting any appropriate damage figure.