In the case of R.E. Davis Chemical Corp v. Diasonics826 F.2d 678 (7th Cir. 1986), 924 F.2d
709 (7th Cir. 1991), a trial was needed to
establish that the plaintiff had the capacity to make an additional sale (since
the goods were pretty rare), and that it would have been profitable for the
plaintiff to have made a second sale.Sometimes it is not clear if a seller is indeed a lost volume seller.It's important to remember that
although § 2-708(2)allows
for recovery for lost volume sellers, the fact that the sale is indeed lost
volume needs to be established.It's
never as cut and dry as the Neri v. Retail Marine Corp. judgment implies.
Since
the extra legal expenses required to establish the damages can be greater
than the actual damages, it makes no sense to have a trial. Neri v.
Retail Marine Corp. just makes the
assumption that you are a lost volume seller if you are in business.That simplifies the system, even
if it isn't always technically correct.Courts tend to be very sympathetic to the
Neri v. Retail Marine Corp.
decision.
Common
law courts often take a similar stance, even in cases that don't fall
under the UCC (eg a house owner who breaches a contract with a
housepainter).