Kgm Harvesting Co. v. Fresth Network

California lettuce grower and distributor KGM Harvesting Company (hereafter seller) had a contract to deliver 14 loads of lettuce each week to Ohio lettuce broker Fresh Network (hereafter buyer). When the price of lettuce rose dramatically in May and June 1991, seller refused to deliver the required quantity of lettuce to buyer. Buyer then purchased lettuce on the open market in order to fulfill its contractual obligations to third parties. After a trial, the jury awarded buyer damages in an amount equal to the difference between the contract price and the price buyer was forced to pay for substitute lettuce on the open market. On appeal, seller argues that the damage award is excessive. We disagree and shall affirm the judgment. In a cross-appeal, buyer argues it was entitled to prejudgment interest from August 1,1991, as its damages were readily ascertainable from that date. We agree and reverse the trial court’s order awarding prejudgment interest from 30 days prior to trial.

Facts

In July 1989 buyer and seller entered into an agreement for the sale and pinchase of lettuce. Over the years, the terms of the agreement were modified. By May 1991 the terms were that…