Duffy Tool & Stamping, Inc., v. Bosch Automotive Motor Systems, formerly known as BG Automotive Motors, Inc.

This appeal involves a contract dispute between a manufacturer of automobile parts and one of its suppliers. After the manufacturer complained repeatedly about the quality of its parts, the supplier informed the manufacturer that it would no longer supply the parts even though two years remained on its contract. The manufacturer rejected a portion of the supplier’s last shipment of parts and contracted with another supplier to take over the manufacturing of the parts. The original supplier then filed suit against the manufacturer in the Chancery Court for Sumner County for the balance due on its last shipment, and the manufacturer counterclaimed for breach of the supply contract. The trial court heard the case without a jury and determined that the supplier had breached the supply contract but was also entitled to a set-off based on its last delivery of parts. Accordingly, the trial court awarded the manufacturer a $133,542.66 judgment against the supplier. On this appeal, the supplier takes issue with the judgment on three grounds: that the parties modified their original contract; that the manufacturer waived its breach of contract claim; and that the trial court did not employ the proper measure of damages. We have determined that the evidence supports the trial court’s conclusion that the supplier breached the contract but that the trial court incorrectly calculated the damages. Accordingly, we reduce the manufacturer’s     judgment against the supplier to $18,953.