American Spinning Mills, Inc. v. Kubicek (In Re American Spinning Mills, Inc.)

OPINION

EMIL F. GOLDHABER, Chief Judge:

The predominant issue arising under the debtor’s complaint and a creditor’s 1 counterclaim is the amount of damages to be awarded to a supplier of yarn when the spinner of wool defectively performs its task. Under the facts of the case before us and for the reasons expressed herein, we hold that the measure of damages is approximately the price at which the supplier of yarn would have resold it.

The facts of this case are as follows: 2 The debtor filed a petition for reorganization under chapter 11 of the Bankruptcy Code (“the Code”) on March 3,1983. Prior…