Neri v. Retail Marine Corp.

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Neri v. Retail Marine Corp.
Court Court of Appeals of New York
Citation 334 N.Y.S.2d 165
30 N.Y.2d 393
285 N.E.2d 311 (1972)
Date decided 1972

Facts: Neri entered into a contract with Defendant to buy a boat. Neri paid a deposit of $4,250. Several days after, he sent notification that he wouldn't be able to buy the boat due to hospitalization and surgery. Defendant didn't return deposit. Defendant later sold the same boat at the agreed price.

Procedural History: Neri filed suit to recover deposit amount. Retail Marine counterclaimed. Trial court awarded $500 to Defendant and ordered that it return the balance of the deposit to Neri. Retail Mairne appealed.

Issue: What measure of damage should be used?

Arguments: Marine argued that it lost profit in the amount of $2,579, and lost incidental costs in storing, upkeeping, insuring, etc. the boat. in the amount of $674. Neri argued that because Marine later sold the boat, they recouped the lost profit. Marine argued that they would've sold two boats instead of the one if Neri hadn't breached contract.

Holding: Marine is entitled to lost profit and incidental damages to total $3,253. Neri recovers the remains of his deposit.

Reasons: UCC ยง 2-708 governs that lost profit measure + incidental damages is the rule.