Chatlos Systems, Inc. v. National Cash Register Corp.

670 F.2d 1304 (3d Cir. 1982)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

P initiated this action in the Superior Court of New Jersey, alleging a breach of warranty regarding an NCR 399/656 computer system it had acquired from D. The case was removed under 28 U.S.C. § 1441(a) to the United States District Court for the District of New Jersey. The district court determined that D was liable for breach of warranty and awarded $57,152.76 damages for breach of warranty and consequential damages in the amount of $63,558.16. D appealed, and this court affirmed the district court's findings of liability, set aside the award of consequential damages, and remanded for a recalculation of damages for breach of warranty. On remand, applying the 'benefit of the bargain' formula of N.J.Stat.Ann. § 12A:2-714(2) (Uniform Commercial Code § 2-714(2)), the district court determined the damages to be $201,826.50, to which it added an award of prejudgment interest. D contends that the district court erred in failing to recognize the $46,020 contract price of the delivered NCR computer system as the fair market value of the goods as warranted and that the award of damages is without support in the evidence presented. D also contests the award of prejudgment interest.