KGM Harvesting Co. v. Fresh Network
Court of Appeal of California
36 Cal. App. 4th 376 (1995)
Relevant factsFree
KGM (defendant) contracted to sell Fresh Network (plaintiff) 14 loads of lettuce weekly, but when lettuce prices rose sharply, KGM refused delivery and sold to third parties at the higher market price instead; Fresh Network refused to pay for lettuce already received and bought replacement lettuce on the open market to fulfill its own contracts with third parties. The trial court awarded Fresh Network the difference between its purchase price and the contract price, minus the value of lettuce actually delivered, and KGM appealed.
IssueFree
Whether a seller who breaches a contract because of a rise in market prices is liable to the buyer for the buyer's costs of replacing the undelivered goods.
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