Jackson Bolt & Screw, Inc. v. Bolt & Screw, Inc.
Docket: 1912008
Court: Supreme Court of Alabama; July 30, 1993; Alabama; State Supreme Court
Defendants Jackson Bolt Screw, Inc. and J.V. McCullough appealed a judgment favoring plaintiff Bolt Screw, Inc. after a nonjury trial. Bolt Screw, which went out of business in December 1988, was involved in selling its inventory to Jackson, a wholesaler based in Mississippi. In December 1988, McCullough and Jackson's vice-president met with Bolt Screw's vice-president to inspect the inventory, with an agreement that all materials would be new and priced at a 30% discount off market rates. McCullough guaranteed payment for the materials purchased. Between January and February 1989, Bolt Screw shipped approximately nine trailer loads of materials, invoicing Jackson for a total of $133,672.23, claiming the 30% discount was applied. However, Jackson contended that the actual value of the received goods was approximately $81,569 and that many items were unordered or unusable, including some that were rusted or counterfeit. Jackson set aside 24 pallets of rejected materials and ultimately paid $60,000, leaving a balance of $73,672.23, which Bolt Screw claimed in a breach of contract lawsuit. The trial court ruled in favor of Bolt Screw for the full invoiced amount. On appeal, it was determined that the trial court erred by not accounting for the unordered and unusable goods, leading to a judgment that was plainly erroneous and against the weight of the evidence. Consequently, the appellate court reversed the judgment and remanded for a new trial.