Buying Power, Inc. v. Graybar Electric Company, Inc.

Beck Redden secured a complete trial and appellate victory for client Buying Power, Inc. (BPI), a group purchasing organization, in its breach of contract lawsuit against Graybar Electric Company, Inc. After 19 months of negotiations, Graybar, a Fortune 500 electrical products supplier, entered a 3-year Group Purchasing Organization (GPO) Agreement in August 2016. Under the deal, BPI would market Graybar’s discounted products to thousands of members, while Graybar agreed to provide pricing discounts on high-volume items and pay BPI an administration fee on invoices paid.

Just four months in, Graybar’s CEO directed unilateral termination without cause, notice, or opportunity to cure, despite the Agreement requiring 90 days’ notice for cause only. BPI sued in the 270th Judicial District Court of Harris County (No. 2017-37325), seeking lost profits from the breached 3-year term.

After a six-day trial, the jury found Graybar breached and awarded BPI $15.6 million in lost profits, calculated by expert David Fuller using actual Graybar sales data to BPI members ($1.497 billion over 3 years), BPI’s 16.5% historical GPO enrollment rate, and the 5% fee. With interest and attorneys’ fees, the total judgment exceeded $29 million.

Graybar appealed to the Fourteenth Court of Appeals which affirmed the trial court’s judgment.

This result highlights Beck Redden’s acumen in high-stakes commercial contract trials and appeals, enforcing negotiated deals and recovering substantial lost profits through rigorous evidence and appellate advocacy. Congratulations to the team composed of Fields Alexander, Owen McGovern, Chris Dove, Jake McClellan, Madison Young, and Elisabeth Butler for this excellent outcome.