Balfour, Guthrie & Co. v. Gourmet Farms

Plaintiff Balfour, Guthrie & Company, Ltd.’s (Balfour) suit seeks money damages for breach of written contract for the purchase by Balfour of defendant Gourmet Farms’ (Gourmet) entire production of wheat for the 1976 growing year. Gourmet cross-complained seeking money damages for breach of the same contract. After a nonjury trial, the court awarded Balfour $45,375.63 plus costs plus interest and denied Gourmet relief on its cross-complaint.

Gourmet appeals contending: (1) The trial court erred in permitting Balfour’s expert witness, Paul Viscetto, to testify over objection to custom and usage within the grain brokerage business in aid of interpretation of disputed provisions of the contract, (2) Balfour breached an implied covenant of good faith in the contract in failing to take action, which if not taken, would and did deprive Gourmet of the fruits of its contract. Gourmet argues that the buyer, Balfour, should have made, on its own initiative, margin calls and “priced out” the contract, should not have allowed the price of wheat to decline—as it did—before making the margin call and upon Gourmet’s failure to respond “pricing out” the contract, and (3) Gourmet…