Went Hang Investment Co. Ltd. ("Went Hang") is a Hong Kong corporation with its principal place of business in Hong Kong. C.J. International Trading Inc. ("C.J. Int'l") is a New York corporation with its principal place of business in New York.
Went Hang is an importer and distributor of various raw materials. On approximately Feb. 16, through its agent Success Universal Limited, Went Hang entered into a contract to purchase 800 metric tons of polyester chips from C.J. Int'l for $1.92 per kilogram, C&F Hong Kong, or a total of $1,536,000.00.
The contract provided that the time of shipment for the first 400 metric tons was to be between February and May. The second 400 metric tons was to be shipped in July. The goods were to be shipped from Mexico (where they were made) to Hong Kong. The contract was silent as to the route to be taken, nor did it contain a "time is of essence" clause or any provision related to arrival or delivery.
Prior to the arrival of the goods in Hong Kong, C.J. Int'l requested Went Hang's payment for the first lot of goods. Unbeknownst to Went Hang, C.J. Int'l had transshipped the goods through Rotterdam, and that fact meant that the shipment would not arrive as quickly as Went Hang thought. The fact that the goods were being trans-shipped through Rotterdam was not apparent from the documents presented for payment. On approximately May 6, Went Hang paid C.J. Int'l for the shipment of the first lot of polyester chips.
Because the chips were transshipped through Rotterdam, the first shipment did not arrive in Hong Kong until June 23. Went Hang believes that C.J. Int'l knew that the trans-shipment would delay arrival, and that C.J. Int'l had concealed that fact from Went Hang.
On July 1, Went Hang's attorney in Hong Kong notified C.J. Int'l that Weng Hang would not pay for the second lot of goods unless C.J. Int'l promised not to trans-ship through Europe. C.J. Int'l declined to so promised, and C.J. Int'l did not make the second shipment.
Went Hang sued C.J. Int'l for in New York for breach of contract. C.J. Int'l counterclaimed for anticipatory breach.
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