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ATALANTA CORPORATION v. OHIO VALLEY PROVISION CO. (01/24/79)

decided: January 24, 1979.

ATALANTA CORPORATION, A CORPORATION, APPELLANT,
v.
OHIO VALLEY PROVISION CO., A CORPORATION, APPELLEE



No. 792 April Term, 1978, Appeal from the Judgment Entered on March 28, 1978, of the Court of Common Pleas of Allegheny County, Civil Division, at No. G.D. 75-8319-In Assumpsit.

COUNSEL

Thomas W. Trimm, Pittsburgh, for appellant.

Alvin J. Ludwig, Pittsburgh, for appellee.

Cercone, Wieand and Hoffman, JJ.

Author: Hoffman

[ 263 Pa. Super. Page 375]

Appellant Atalanta Corporation (Seller) is in the business of selling meat products wholesale to packing houses and meat processors. Appellee Ohio Valley Provision Company

[ 263 Pa. Super. Page 376]

(Buyer) is a large meat packaging and processing business in Allegheny County, Pennsylvania. Seller brought this lawsuit to recover damages for Buyer's alleged failure to provide a bank guaranty to secure the payment of the purchase price of a quantity of Australian Shank meat from Seller. Seller re-sold Buyer's order to another customer at a loss of $7,621.48, the stipulated amount of damages if liability was found. The lower court, in a non-jury trial, found that Buyer had not breached the contract, and entered judgment for Buyer. Seller now appeals from the order to the lower court dismissing Seller's exceptions. We reverse.

The parties started doing business in January, 1974, when Seller's salesman, Joseph Nazarette, solicited Buyer's purchase of a quantity of Irish Beef Trimmings stored in Seller's Pittsburgh warehouse. Nazarette requested Buyer to furnish Seller with a bank guaranty to secure the payment of the purchase price. On February 20, 1974, the Allegheny Valley Bank of Pittsburgh (Bank) sent the following letter to Seller:

"One of our valued customers, Ohio Valley Provision Company, has placed an order with your company in the amount of approximately $19,000.00 and we understand that you want a guarantee before releasing the meat products to them.

"You may be assured that this amount will be paid by the above mentioned company within 10 days. This company has been a customer of ours since their organization and maintains substantial balances with us.

    & ...


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