Sonic Manufacturing Technologies, Inc. v. AAE Systems, Inc.

Plaintiff Sonic Manufacturing Technologies, Inc., sued defendant AAE Systems, Inc., for breach of contract, and defendant cross-complained against plaintiff for breach of the same contract. After a court trial, the trial court found in favor of plaintiff on the complaint and cross-complaint. It entered judgment for $94,269.70. Defendant appeals from the judgment and contends that there is no substantial evidence in support of the trial court’s finding that it breached the contract. Plaintiff appeals from the judgment and contends that the trial court erred by finding that defendant did not breach the contract in another respect. We agree with defendant’s *458 contention and reject plaintiff’s contention. We therefore reverse the judgment with directions to enter judgment for defendant on the complaint.

BACKGROUND

Plaintiff agreed to manufacture for and sell to defendant 500 modem cards. The contract, in the form of purchase order No. 0026667, dated April 3, 2006, provided that plaintiff would initially manufacture a “First Article” (five modem cards), “Submit First Article for approval,” and then “Receive release for production.” It then detailed: “After the First…