Facts

MCP Metalspecialties Inc. (MCP US), and its related company Mining & Chemical Products Ltd. (MCP UK), filed suit against P. Kay Metal Inc. over the disputed right and subsequent breach of an alleged contract to purchase 100 metric tons of bismuth for $9.60 per pound. P. Kay cross-claimed against plaintiffs for fraud, conversion, unjust enrichment, and breach of contract.

PLAINTIFFS' CONTENTIONS:
MCP UK argued that it was the principal of MCP US or, alternatively, that MCP US assigned its rights to MCP UK and thus MCP UK was in a position to enforce a contract between MCP US and P. Kay.

Plaintiffs contended that MCP US entered into an agreement with P. Kay for the purchase of bismuth. Plaintiffs contended that P. Kay breached the contract by refusing to deliver 81 metric tons of the promised bismuth and instead selling it to other companies at higher prices. Plaintiffs claimed they were entitled to offset and not pay P. Kay the price of the remaining 19 metric tons received, since the damage they incurred exceeded the price of the 19 metric tons.

DEFENDANT'S CONTENTIONS:
P. Kay argued that there was no contract or deal to sell the bismuth to plaintiffs. P. Kay also argued that plaintiffs tried to fraudulently induce P. Kay to enter into a contract for the sale of 100 tons of bismuth and, when they were unsuccessful, induced P. Kay into a smaller contract for the sale of 19 tons, which they had yet to pay for. P. Kay claimed that plaintiffs never had any intention of paying for the 19 metric tons.

Result

The jury awarded plaintiffs $481,043, on its claim, and P. Kay $664,224, on its cross-claim. The court then granted plaintiffs' motion for judgment notwithstanding the verdict, awarding plaintiffs $746,733 and awarded P. Kay $0. MCP UK also retained the 19 metric tons previously shipped, valued at $398,000, with no payment to P. Kay.

Other Information

FILING DATE: April 14, 2008.