Delano Growers Co-op. Winery v. Supreme Wine Co. Inc.

473 N.E.2d 1066 40 UCC Rep.Serv. 93 (Cite as: 393 Mass. 666, 473 N.E.2d 1066)

Supreme Judicial Court of Massachusetts, Suffolk.

DELANO GROWERS' COOPERATIVE WINERY

v.

SUPREME WINE CO., INC.

Argued Sept. 13, 1984.

Decided Jan. 21, 1985.

Seller brought action seeking payment for wine sold and delivered. Buyer counterclaimed for breach of contract alleging that earlier shipments of wine for which payment had been made and all of the wine for which no payment had been made had been spoiled due to the presence of Fresno mold. Subsequent to a master's report, the Superior Court, Suffolk County, Francis 1. Larkin, 1. dismissed seller's complaint and awarded damages to buyer on its counterclaim including loss of goodwill damages, and seller appealed. The case was transferred to the Supreme Judicial Court. The Supreme Judicial Court, Nolan, J., held that: (1) judge concluded properly that facts not final master report was admissible only as prima facie evidence; (2) seller breached implied warranty of merchantability; (3) although buyer had accepted the wine, it later properly revoked that acceptance by informing seller that it did not wish to keep the wine containing Fresno mold which substantially impaired the value of the wine to buyer and thus, seller was not entitled to the contract price and its complaint was properly dismissed; and (4) evidence was sufficient to warrant recovery of consequential damages of lost goodwill in the amount of $100,000.

Judgment affirmed.

Richard L. Neumeier, Boston (Leonard Zandrow, Boston, with him), for plaintiff.

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