This section contains the nature of the case and procedural background.

Canusa (P) sought damages for lost sales as a result of an alleged breach of contract by Lobosco (D). P recycles and brokers waste paper. D receives, collects, cleans and resells recyclable paper to paper mills and brokers. D entered into an agreement with the City of New York to accept 850 tons of material per week to be recycled. D needed a baler to do this work and put down a deposit on a baler but then decided to go with P because P would finance the baler. An output agreement was entered for a five-year period in which D would ship to P 1500 tons per month of number 8 quality old newsprint. From the very beginning of the agreement, problems arose in that D never hit its target goals of shipments. D was off by 30% plus consistently. At the same time, D was also shipping another paper product to Mandala, but there was no direct evidence regarding the quality and content of these overseas shipments. Eventually, D's shipments to P decreased to O by March 1994. The contract was originally supposed to terminate at the end of 1997. Modifications to the contract were offered for a $3 per ton fee for use of the baler and set monthly payments. D never accepted any of the modification proposals. P sued D for breach, fraudulent inducement, and replevin of the baler. Partial settlement was reached, and all that remained was the breach of contract action.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.