Zapata Hermanos Sucesores, S.A. v. Hearthside Baking Co.

Zapata Hermanos (plaintiff), a Mexican company, sold cookie tins to Lennell (defendant), a U.S. baker, which failed to pay 110 invoices totaling almost $900,000. Zapata sued under the Convention on Contracts for the International Sale of Goods (CISG) for the price, prejudgment interest, and attorney's fees. The trial court granted Zapata judgment on most invoices and, after a jury trial on the rest (which Lennell won), awarded Zapata $350,000 in prejudgment interest and $550,000 in attorney's fees. The trial judge had made numerous comments, some before the jury, about Lennell's culpability. Lennell appealed.

Whether attorney's fees are automatically recoverable as part of the 'loss' an injured party may recover under Article 74 of the CISG.