NATIONAL MICROSALES CORPORATION, Plaintiff, v. THE CHASE MANHATTAN BANK, N.A., Defendant, 761 F. Supp. 304

Summary

A computer equipment company (company) was involved in the business of buying and selling computer output microfilming (COM) equipment. The company entered into negotiations with a bank to sell some of its used COM equipment for resale. The bank, instead, sold its used COM equipment to a third party. The company filed a diversity action alleging breach of contract. The bank asserted an affirmative defense based on the Statute of Frauds and N.Y. U.C.C. Law § 2-201. The company filed motions for summary judgment and for sanctions for discovery misconduct during depositions. The court granted the company's motion as to the affirmative defense, but denied sanctions. The court held that the bank's familiarity with the goods it purchased and sold was sufficient to establish that it was a merchant. The company failed to obtain an order to compel answers, thus sanctions were not appropriate.