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Chatlos Systems Inc. v. National Cash Register Corp.

UNITED STATES COURT OF APPEALS, THIRD CIRCUIT


February 11, 1982

CHATLOS SYSTEMS, INC., A NEW JERSEY CORPORATION
v.
NATIONAL CASH REGISTER CORPORATION NCR CORPORATION, APPELLANT

Before Aldisert, Rosenn and Weis, Circuit Judges. Before Seitz, Chief Judge, and Aldisert, Adams, Hunter, Weis, Garth, Higginbotham, Sloviter, Becker and Rosenn, Circuit Judges. n*

Author: Per Curiam

SUR PETITION FOR REHEARING

ADAMS, Circuit Judge, dissents from the denial of rehearing, and makes the following statement:

Ordinarily, an interpretation of state law by this Court, sitting in diversity, is not of sufficient consequence to warrant reconsideration by the Court sitting in banc. One reason is that if a federal court misconstrues the law of a state, the courts of that state have an opportunity, at some point, to reject the federal court's interpretation. See Chuy v. Philadelphia Eagles Football Club, 595 F.2d 1265, 1286-87 (3d Cir. 1979) (in banc) (Aldisert, J., dissenting). In this case, however, the majority's holding, which endorses a measure of damages that is based on what appears to be a new interpretation of New Jersey's commercial law, involves a construction of the Uniform Commercial Code as well. Rectification of any error in our interpretation is, because of the national application of the Uniform Commercial Code, significantly more difficult than it would be if New Jersey law alone were implicated. Moreover, the provision of the Uniform Commercial Code involved here is of unusual importance: the measure of damages approved by this Court may create large monetary risks and obligations in a wide range of commercial transactions, including specifically the present burgeoning computer industry. Because there would appear to be considerable force to the dissenting opinion of Judge Rosenn and because I believe that the principle articulated by the majority should be reviewed by the entire Court before it is finally adopted, I would grant the petition for rehearing in banc.

JAMES HUNTER, III and GARTH, Circuit Judges join in this statement.

BY THE COURT,

RUGGERO J. ALDISERT

Circuit Judge

19820211

© 1998 VersusLaw Inc.



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