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CANUSA CORP. v. A & R LOBOSCO, INC.

Civ. A. No. CV-94-3030(DGT).

986 F.Supp. 723 (1997)

CANUSA CORPORATION, Plaintiff, v. A & R LOBOSCO, INCORPORATED, a/k/a A & R Lobosco Company and Michael Lobosco, Defendants.

United States District Court, E.D. New York.

November 26, 1997.

Attorney(s) appearing for the Case

Hill Rivkins Loesberg O'Brien Mulroy & Hayden, New York City, for Plaintiff.

Joseph Trotti, Bayside, NY, for Defendants.

MEMORANDUM AND ORDER

TRAGER, District Judge.

This diversity action for breach of contract raises a surprisingly novel question: what is the effect of an estimate in an output contract when the supplier produces less than the stated estimate? I conclude that New York law would hold that good faith, rather than the stated estimate, would control whether a breach has occurred.

Background

Plaintiff Canusa seeks damages for lost sales...

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