Bergerco, U.S.A. v. The Shipping Corporation of India, Limited

Bergerco, USA (Bergerco), an agricultural commodities broker, sued The Shipping Corporation of India, Limited (SCI), for breach of a contract for the shipment of goods. After a one day bench trial, the district court held that defendant had breached the contract by delaying shipment, but limited plaintiff’s recovery to the diminution in the value of the goods caused by the delay. When Bergerco was unable to prove any diminution in value, the court entered judgment for SCI. The court reporter subsequently lost his notes of trial, and Bergerco attempted to reconstruct the record pursuant to Federal Rule of Appellate Procedure 10(c). On appeal, Bergerco seeks either reversal of the district court judgment denying consequential damages or a remand because of the inadequacy of the district court’s reconstruction of the missing transcript.

I. FACTS AND PRIOR PROCEEDINGS

On September 15, 1978, Bergerco agreed to sell 11,000 bags of peas to Vegoils, Ltd, an Indian corporation. The contract between Bergerco and Vegoils was specifically conditioned on the peas being shipped nonstop from New Orleans to Bombay. Bergerco then contracted with SCI to ship the peas from New Orleans to Bombay…