Facts

Plaintiff Nicolosi Distributing Inc., an automotive parts distributor, entered into a contract with defendant Sun Jib Corporation d/b/a 19th Avenue Auto Body Center. The contract provided that plaintiff would be defendant's exclusive provider of DuPont auto paint and refinishing products for five years. Plaintiff was to provide defendant with a 25 percent discount on DuPont's Spies Hecker refinishing products, a paint mixing system, and training for defendant's staff. Twenty months later, defendant stopped purchasing from plaintiff. Plaintiff filed suit.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendant had breached the contract's exclusivity clause by retaining another supplier as its distributor. It alleged that defendant had contracted with it in order to take advantage of the 25 percent discount on DuPont Spies Hecker products, and to receive the $500,000 loan plaintiff promised if defendant signed the contract. Plaintiff also asserted that defendant had declined training classes for its employees.

DEFENDANT'S CONTENTIONS:
Defendants counterclaimed that plaintiff had breached the contract. It alleged that plaintiff had not provided the training or sales support called for in the contract, and engaged in price gouging after the contract was signed.

Settlement Discussions

Plaintiff demanded $75,000. Defendant offered $18,495.

Damages

Plaintiffs sought $144,000 in damages, calculated at $3,600 per month based on the anticipated profit margin and DuPont discounts that it would have secured had the contract been honored for 40 months, the duration of the contract. Defendant argued that plaintiff was only entitled to the return of the paint mixing system.

Result

Plaintiff was awarded $72,800 in lost profit damages, plus fees and costs. The judge also ruled in plaintiff's favor on the cross complaint.

Other Information

Plaintiff also filed a claim against Finishmaster Inc., the company that had begun supplying defendant with paint and refinishing supplies, for contractual interference. Plaintiff's counsel moved to modify the judgment to add certain damage elements that were denied. Defendant moved to reduce the cost bill, which was granted in part.