Sun Hill Industries, Inc. v. Kraftsman Group, Inc.

610 A.2d 684, 27 Conn. App. 688, 20 U.C.C. Rep. Serv. 2d (West) 147, 1992 Conn. App. LEXIS 220
CourtConnecticut Appellate Court
DecidedJune 2, 1992
Docket9945
StatusPublished
Cited by12 cases

This text of 610 A.2d 684 (Sun Hill Industries, Inc. v. Kraftsman Group, Inc.) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sun Hill Industries, Inc. v. Kraftsman Group, Inc., 610 A.2d 684, 27 Conn. App. 688, 20 U.C.C. Rep. Serv. 2d (West) 147, 1992 Conn. App. LEXIS 220 (Colo. Ct. App. 1992).

Opinion

Daly, J.

The defendant, Kraftsman Group, Inc., appeals from the trial court’s judgment in favor of the plaintiff, Sun Hill Industries, Inc., rendered in accordance with the report of an attorney trial referee. The defendant claims that the trial court improperly (1) found that certain cartons manufactured by the [690]*690defendant were defective and failed to conform to war-rantees because the plaintiff did not offer expert testimony regarding the cause of the defective condition of the cartons, (2) shifted the burden of proof from the plaintiff to the defendant concerning the value of the cartons used by the plaintiff, (3) found that all cartons manufactured by the defendant in 1985 were defective because the evidence revealed that the defendant manufactured and shipped older and newer designed cartons during 1985 and the plaintiff offered evidence that related only to the newer cartons, and (4) abused its discretion by failing to conduct a hearing to consider the merits of each of the defendant’s exceptions to that report.

The following facts are relevant to this appeal. The defendant supplied cardboard cartons to the plaintiff for the shipping and displaying of the plaintiff’s products. The plaintiff and the defendant had been involved in an ongoing business relationship since 1980. During its business dealings with the plaintiff, the defendant was represented by Leon Weinstock. Wein-stock was not employed by the defendant but used an office on the defendant’s premises. The defendant authorized Weinstock to make quotes on proposals to the plaintiff.

The plaintiff called Weinstock concerning the 1985 Christmas season order of cardboard cartons from the defendant. Weinstock met with an employee of the plaintiff and a freelance designer in June, 1985, concerning a design for a cardboard container. This meeting resulted in the creation of a model of the cardboard container to be manufactured by the defendant. The designer prepared specifications including the strength of the cardboard to be used for the display carton. The sample and written specifications were delivered to the defendant. The written specifications were not offered into evidence. It was the defendant’s practice to ship [691]*691an order only after the customer approved the samples sent by the defendant. The plaintiff approved the defendant’s samples. The price of each carton was $3.44.

On July 18, 1985, the defendant shipped 7170 cartons lying flat on pallets to the plaintiff. This invoice covered two different purchase orders. Part of this invoice referred to 3000 cartons described as A392FD and 743FD, which involved a purchase order that was originally submitted on May 21,1985. This invoice also included 4170 cartons described as A415FD and A488XC. The A415FD cartons were referred to as the defendant’s order number C631. The A488XC cartons were referred to as the defendant’s order number C632. On August 18, 1985, another 5515 cartons were shipped to the plaintiff. The August 18,1985 shipment covered only A488XC and A415FD cartons. It was a continuation of the July 18, 1985 invoice.

The plaintiff retained an outside organization to assemble the cartons and pack them with the plaintiff’s items. The plaintiff then shipped the assembled cartons to retail stores to be used as standing floor display units. In the fall of 1985, the plaintiff discovered that after the cartons were assembled and stacked on pallets in the plaintiff’s warehouse, the lower cartons collapsed under the weight of the other cartons. As a result, the cartons were unable to function properly as display units in the retail stores. The plaintiff notified Wein-stock about this problem during September, 1985. Weinstock testified that he observed a pallet that contained two sets of cardboard display cartons. Each set contained approximately 100 cardboard display cartons. The bottom set had collapsed under the weight of the top set. After observing these cartons, he took a sample to the defendant. At Weinstock’s suggestion, the plaintiff ordered from the defendant additional cardboard inserts for the cartons which prevented them [692]*692from collapsing. The inserts required additional labor to install and were found to be unsightly when the cartons were unfolded as display units.

The specifications sent to the defendant called for cartons with 200 pounds per square inch bursting strength. The defendant ordered this type of cardboard from its supplier. After receiving this cardboard from its supplier, the defendant did not test it to determine if it met the 200 pound test requirement but placed a stamp on the cardboard indicating that it met the required 200 pounds per square inch bursting strength. The plaintiff ultimately was charged $48,180.40 for the display cartons; however, the defendant did not receive any payment. Weinstock paid for the cost of the cardboard inserts which amounted to $1739.

This action was referred to an attorney trial referee who found that Weinstock had acted as an agent for the defendant. The evidence offered by the plaintiff established that the cartons manufactured by the defendant failed to meet the specifications or to conform to the sample submitted by Weinstock. This resulted in the cartons’ not being suitable for their intended purpose. The plaintiff failed to satisfy its burden of proving damages that resulted from the defective cartons manufactured by the defendant. Judgment was rendered in favor of the plaintiff for nominal damages in the amount of $10 on the complaint.

On the counterclaim, the referee awarded $545 to the defendant. This amount was based on the cost of the pallets used to ship the cartons to the plaintiff. The referee stated that “[b]ecause the defendant did not supply cartons in accordance with the plaintiff’s orders, it is not entitled to receive the agreed value for cartons that would have conformed to the orders.” The referee concluded that “[although the plaintiff used the carton for scrap and other purposes, any finding [693]*693as to the reasonable value of such cartons would of necessity be based upon speculation.” Therefore, the referee did not award to the defendant the price of the display cartons that were actually used by the plaintiff.

In response to a motion for articulation, the referee stated that the evidence failed to establish a distinction between older design cartons which were not defective and newer design cartons which were allegedly defective. As to the defendant’s counterclaim, the referee classified it as a claim for “unpaid cartons designed and manufactured for the 1985 Christmas market.” The referee further found that “[t]he plaintiff’s president’s testimony that it used 2131 cartons did not establish that it benefited from those cartons or that those cartons meet specifications or conformed with the samples.”

Because this case involves the sale of goods, it is governed by Article 2 of the Uniform Commercial Code (UCC). General Statutes § 42a-l-101 through 42a-2-725. Before resolving the defendant’s claims, we must determine whether the referee treated the plaintiff as a rejecting buyer or as a buyer who accepted nonconforming goods under Article 2 of the UCC. The referee did not make an express finding concerning the plaintiff’s status as a rejecting buyer or as a buyer who accepted nonconforming goods. On the basis of our review of the record, we conclude that the plaintiff accepted the cartons and thus was not a rejecting buyer.

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Cite This Page — Counsel Stack

Bluebook (online)
610 A.2d 684, 27 Conn. App. 688, 20 U.C.C. Rep. Serv. 2d (West) 147, 1992 Conn. App. LEXIS 220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-hill-industries-inc-v-kraftsman-group-inc-connappct-1992.