Kamco Supply Corp. v. On the Right Track, LLC

Kamco Supply Corporation (plaintiff) agreed to buy at least 164.4 million linear feet of On the Right Track, LLC's (OTRT) (defendant) Trakloc partitioning system in 2006, including a minimum of eight million linear feet monthly, but never met a single monthly minimum. When Kamco told OTRT in April or May 2006 that it simply couldn't hit the minimums and suggested ending the agreement, OTRT chose instead to keep the contract alive in hopes sales would pick up, and even bought back nearly $48,000 worth of Trakloc from Kamco around that time - all without ever formally notifying Kamco that it was in default. By November 2006 Kamco sued for breach, and OTRT countersued over the missed minimums; the trial court sided with Kamco on the counterclaims, finding OTRT had waived the minimum-purchase requirements, and OTRT appealed.