L. Albert & Son v. Armstrong Rubber Co.
United States Court of Appeals for the Second Circuit
178 F.2d 182 (2d Cir. 1949)
L. Albert & Son (plaintiff) contracted in December 1942 to sell Armstrong Rubber Co. (defendant) four rubber-reconditioning machines, delivering two on time in August 1943 but not delivering the other two until mid-1945, prompting Armstrong to refuse all four machines. Albert sued for breach, and Armstrong counterclaimed over the delay, seeking reliance damages including the $3,000 it had spent building foundations for the machines in anticipation of their timely delivery. The trial court dismissed both parties' core claims but awarded Albert the value of the portion of the machines Armstrong had actually put to use, and both sides appealed.
Whether a party injured by breach can recover costs it incurred preparing for the breaching party's performance.