The resulting damages figure must then be reduced by the amount the injured party would have paid for the freight, had there been no breach, to arrive at the amount due for the transaction in question. For example, let’s say that under the originally contemplated transaction, your customer would have paid you $15,000 (delivered) for the product.
From this $15,000, had there been no breach, you would have owed the carrier, let’s say, $5,000 for freight, leaving you $10,000 to cover your expenses and (hopefully) your profit.
If, following the breach, no credit for the anticipated freight expense was applied and you recovered $15,000 from the truck broker, you would be making out $5,000 better than under the originally contemplated bargain. In other words, you would be making an improper windfall at the carrier or truck broker’s expense.
Your questions? Yes, send them in. Legal answers? No, industry knowledgeable answers. If you have questions or would like further information, email tradingassist@bluebookservices.com.
