
Delchi Carrier SpA v. Rotorex Corp.
United States Court of Appeals for the Second Circuit
71 F.3d 1024 (1995)
Relevant factsFree
Rotorex (defendant) shipped air-conditioner compressors to Delchi (plaintiff) that failed to meet agreed performance specifications, and after Rotorex refused to supply conforming replacements, Delchi cancelled the contract and lost sales volume; the trial court found breach and awarded lost profits and certain remediation costs, but denied damages for shipping and customs costs, tooling purchased specifically for Rotorex's compressors, and labor costs from idled production, and both parties appealed.
IssueFree
Whether a breaching party is liable for lost profits and incidental and consequential damages.