Orange and Rockland Utilities, Inc. v. Amerada Hess Corp. case brief
Orange and Rockland Utilities, Inc. v. Amerada Hess Corp. case
59 A.D.2d 110 (1977)
Plaintiff appealed from a judgment of
the Supreme Court in Rockland County (New York), in favor of
defendant upon a decision of the court in plaintiff's action for
damages as a result of an alleged breach of a requirements contract.
CASE FACTS Plaintiff appealed from a judgment in
favor of defendant in plaintiff's action for damages as a result of
an alleged breach of a requirements contract. Defendant had agreed to
supply plaintiff's fuel oil requirements at a fixed price per barrel
for a period of four years. The trial court held that plaintiff
exhibited an absence of good faith.
The court, on appeal, determined
that there were issues as to whether plaintiff's requirements
occurred in good faith and whether those requirements were
unreasonably disproportionate under N.J. Stat. Ann. § 12A: 2-306, to
the estimates stated in the contract.
A finding of an absence of good faith was supported by the record,
and, that since plaintiff's requirements for the entire term of the
contract were more than twice the total contract estimates,
plaintiff's demands were "unreasonably disproportionate" to
CONCLUSION Determination that there was an absence
of good faith on the part of plaintiff affirmed because plaintiff's
demand for more than double its contract estimates to defendant was
as a matter of law "unreasonably disproportionate" to those
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