VTE 075F VTE 075G 7 2.3 Dimensions and weight 2.2 Accessories supplied kg 1. United States Court of Appeals, Second Circuit. WINTER, Circuit Judge: Rotorex Corporation, a New York corporation, appeals from a judgment of $1,785,772.44 in damages for lost profits and other consequential damages awarded to Delchi Carrier SpA following a bench trial before Judge Munson. The basis for the award was Rotorex's delivery of nonconforming compressors to Delchi, an Italian manufacturer of air conditioners. Delchi cross-appeals from the denial of certain incidental and consequential damages. We affirm the award of damages we reverse in part on Delchi's cross-appeal and remand for further proceedings. BACKGROUND In January 1988, Rotorex agreed to sell 10,800 compressors to Delchi for use in Delchi's 'Ariele' line of portable room air conditioners. The air conditioners were scheduled to go on sale in the spring and summer of 1988. Prior to executing the contract, Rotorex sent Delchi a sample compressor and accompanying written performance specifications. The compressors were scheduled to be delivered in three shipments before May 15, 1988.An Italian buyer and a US seller entered into a contract for the sale of 10,800 compressors to be delivered in 3 installments. The buyer had informed the seller that the compressors would be used in the production of the buyer's line of portable room air conditioners to be sold some months later. The seller sent a first shipment of compressors and received the related payment.
While the second shipment of compressors was en route in Italy, the buyer discovered that the seller's compressors from the first lot were non-conforming, and so rejected the compressors and cancelled the contract.
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