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1111 SUPERIOR AVENUE
CLEVELAND, OHIO 44114
216.696.4200
Since the 1860's, Schneider, Smeltz, Ranney & LaFond has offered thoughtful, practical solutions to the complex legal issues facing our clients.
Best Wishes for a Happy and Safe Holiday Season from everyone at Schneider, Smeltz, Ranney & LaFond! | |
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Buyer's Remedies for Breach of Contract Under the Uniform Commercial Code |
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In the last edition of this newsletter, we examined a seller's remedies for breach of contract. As promised, this article addresses a buyer's remedies for breach of contract.
If a seller fails to deliver goods or if the delivered goods are defective, the buyer is entitled to damages. However, the mere fact that a seller has breached the contract does not entitle the buyer to recoup anything more than its actual loss.
A buyer who never received the goods, rightfully rejected non-conforming goods, or justifiably revoked acceptance of the goods may:
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Incidental damages include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected; any commercially reasonable charges, expenses or commissions in connection with purchasing substitute goods; and any other reasonable expense incident to the delay or other breach.
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Consequential damages include any profits which the buyer could have made by reselling the contracted-for goods had they been delivered in the proper condition. However, these damages must be proved with reasonable certainty, and must be shown to have been reasonably foreseeable at the time of the contract.
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If the buyer chooses not to "cover", it may collect the difference between the contract price and the market price at the time the buyer learned of the breach. Any incidental and consequential damages may be added to this amount, less expenses saved by buyer as a result of seller's breach. If the contracted goods are considered "unique", the buyer may be entitled to a court order requiring the seller to produce and deliver the goods.
If a buyer accepts defective goods and does not properly revoke the acceptance, the buyer is still entitled to damages. In that case, the buyer must give the seller prompt notice of the defect. Upon doing so, the buyer is entitled to damages for breach of express or implied warranty. These damages are the difference between the value of the goods as warranted and their value as received, and may include incidental and consequential damages.
It is also important to note that if the buyer properly refuses the goods, the seller must return the purchase price. If the seller refuses to do so, the buyer has a security interest in any goods in the buyer's possession at the time of seller's breach, and the buyer has the right to resell such goods in order to realize on that security interest. | |
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Attorney Spotlight
Todd K. Masuda
Todd K. Masuda joined the firm in 2007 and works within the general practice areas of the firm, including business law and real estate.
Todd was born in Kyoto, grew up in California and Hawaii, and lived in Manhattan before moving to Cleveland. His bachelor of arts degree is from the City College of New York, summa cum laude. Before law school, he was active as a visual artist. During law school, he interned at Human Rights Watch. Todd joined the firm in 2007, immediately after receiving a juris doctor degree, cum laude, from Case Western Reserve University.
Todd and his wife reside in Ohio City with their daughter. | |
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If you have any questions regarding this subject, please contact the author of this article, Ryan P. Nowlin, or any of the attorneys in our Business Law or Litigation law practice groups: |
When Probate Goes Wrong |
The Probate Court oversees administration of decedents' estates, but occasionally disputes arise that the parties cannot resolve without direct Court intervention: Is the Will valid? Are there assets missing? Has the Executor violated his duties? These disputes are litigated in the Probate Court, which has specific jurisdiction to handle probate-oriented disputes. Below are some answers to common questions about what to do when probate goes wrong:
A will contest is a specific type of lawsuit-an action requesting the Probate Court to declare that a Will is invalid. It must be filed within three months after the Executor certifies to the Court that she has notified the beneficiaries and heirs that the Will was admitted to probate.
Usually for one of three reasons: (1) It was not signed with the formalities required by law (e.g., the Will was not witnessed by two adults); (2) The decedent was unduly influenced in creating the Will; and/or (3) The decedent did not have the mental capacity to execute a Will.
If family members agree a Will is valid but disagree over how the Will should be interpreted, the executor or a beneficiary can file a "declaratory judgment" action to have the Court decide how to interpret the Will.
She can file a "concealment of assets" action against the party and require that person to testify concerning possession or transfer of estate property. If the Court finds the party concealed the assets, that party must return the assets along with a ten percent penalty plus attorney fees.
The beneficiary is entitled to receive reports of the estate assets from the executor-an "Inventory" that shows the assets at the beginning of the estate and "Accounts" that show what happened to the assets during administration. The beneficiary can file objections (referred to as "exceptions") to these reports after they are filed with the Court.
These rules apply to trusts created in Wills, but the most common Trusts these days are non-probate documents. Disputes over non-probate Trusts may not be litigated in Probate Court. However, there are similar actions that may be brought in the general court system (as opposed to the specialized system of the Probate Court) to interpret Trusts and enforce a Trustee's duties.
Probate litigation is very different from general litigation. It requires a different knowledge base and skill set, because it straddles the worlds of litigation, probate administration, and sometimes taxation. Schneider, Smeltz, Ranney & LaFond's combination of excellent litigators and knowledgeable probate lawyers uniquely positions it to efficiently and effectively handle probate litigation matters. |
If you have any questions regarding this subject, please contact the author of this article, David M. Lenz, or any of the attorneys in our Estate Planning and Probate Law practice group: |
Cleveland Already Prohibits Discrimination Based on Sexual Orientation and Gender Identity |
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Laws prohibiting discrimination on the basis of sexual orientation are being considered on the federal level (versions of the Employment Non-Discrimination Act of 2009, or "ENDA," have been introduced in the House and Senate), and on the state level (Ohio H.B. 176). As it turns out, the City of Cleveland has already passed ordinances prohibiting employment discrimination on the basis of sexual orientation or "gender identity or expression" (which means the "gender-related identity, external presentation of gender identity through appearance, or mannerism or other gender-related characteristics of an individual, regardless of the individual's designated sex at birth").
Anti-discrimination laws work by establishing "protected classes" of people, and prohibiting discrimination against people in those classes. Race, sex, religion, disability, and age are typical protected classes, but, as we see with sexual orientation issues, different jurisdictions can add various distinctions at different times. For example, one of the issues around ENDA, the federal law, is whether "gender identity" will be part of the protected class. The exemptions from the laws also differ: the proposed federal law contains an exemption for religious organizations; Ohio's proposed law exempts religious groups and employers with fewer than 15 employees; the new Cleveland rule (the only rule discussed here that is actually in effect) exempts (1) employers with fewer than 4 persons (not counting family members), (2) religious organizations "whose membership or services are limited to persons of a single religious faith [sic]," (3) religious educational institutions, (4) private social or fraternal societies, and (5) "any type of employment where religion, religious creed or nationality would usually and normally be considered an essential qualification for employment." The Cleveland ordinance also requires employers to provide reasonable access to adequate facilities (e.g., bathrooms and showers) that are not inconsistent with an employee's gender identity, which is established either at the time of initial employment or upon notification to the employer that the employee has or is undergoing gender transition.
New laws reflect changing social attitudes, but also drive them. Early anti-discrimination legislation set brother against brother. Today, employment lawyers with long experience remember a time when employers treated charges of race discrimination with great seriousness, yet pooh-poohed sex discrimination plaintiffs. These days, of course, sex discrimination and harassment are both treated seriously. We might expect the same social evolution with gay rights. A recent NYT article (click here for link) noted that same-sex marriage supporters have been disappointed by recent setbacks in state-by-state efforts to codify the freedom to marry, but also recognized the trend of smaller, positive changes, including local nondiscrimination ordinances.
In light of the new law, Cleveland employers should amend their policies and train supervisors to account for the new protected classes, and, in doing so, have the chance to be ahead of the curve. |
If you have any questions regarding this subject, please contact the author of this article, Todd K. Masuda, or any of the attorneys in our Business Law or Employment Law practice groups: |
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At Schneider, Smeltz, Ranney & LaFond, we offer thoughtful, practical solutions to the complex problems facing our clients. Established in 1895, Schneider, Smeltz, Ranney & LaFond is Cleveland's oldest law firm. We not only apply the technical expertise our clients require, but also provide excellent, personal, and timely service to our clients.
We are a civil practice firm. Our primary areas of practice are business law, business succession planning, estate planning, estate and trust administration, charitable planning, family law, employment law, litigation, real estate, taxation and health care law.
Please feel free to contact one of our attorneys if you would like more information on any of the above issues or if you are in need of quality legal services.
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