Friday, December 27, 2013

Orange and Rockland Utilities, Inc. v. Amerada Hess Corp. case brief

Orange and Rockland Utilities, Inc. v. Amerada Hess Corp. case brief summary
59 A.D.2d 110 (1977)

CASE SYNOPSIS
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.

DISCUSSION

  • 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 those estimates.

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 estimates.


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