Magistrate Judge Jeremiah McCarthy
Buffalo Tungsten Inc. (BTI) sought $475,120 for unpaid tungsten powder delivered to Indiana’s CMW International Inc. (CMW) on consignment. CMW’s counterclaim sought $800,000 for BTI’s alleged breach of an agreement to supply its tungsten powder requirements. The court directed that a $345,500 judgment—plus costs but not attorney fees—be entered for BTI. CMW failed to prove its counterclaim by preponderant evidence. Despite being an “astute businessman” CMW’s chief operating officer Krepps admitted that no written documents exchanged with BTI stated that CMW would buy all of its tungsten powder exclusively from BTI. If CMW truly believed it had reached a binding requirements contracts with BTI, that contract “would have been reduced to writing.” Further if CMW believed BTI had breached the contract, Krepps’ agenda for a Nov. 30, 2010, meeting with BTI would have mentioned that breach. Further, CMW failed to prove damages. To the extent it passed on increased costs—stemming from higher prices paid to other suppliers—on to its customers, CMW was not damaged. Because CMW did not show which increased costs were passed on, any damages award to CMW would be speculative and improper.
