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Contracts Keyed to Frier
Northern Indiana Public Service Co. v. Carbon County Coal Co.
Citation:
799 F.2d 265 (7th Cir. 1986)Facts
Plaintiff and Defendant entered into a contract whereby Defendant agreed to sell and Plaintiff agreed to buy approximately 1.5 million tons of coal every year for 20 years, at a price of $24 a ton subject to various provisions for escalation which by 1985 had driven the price up to $44 a ton. The state public service commission ordered Plaintiff to make “economy purchase orders” from other utilities. Plaintiff stopped accepting deliveries and sought a declaratory judgment to have contract performance excused. Defendant counterclaimed for breach of contract, seeking specific performance. The court awarded damages to Defendant for the breach. Plaintiff sought review, alleging the court erred in refusing a continuance, that the contract was illegal because Defendant violated Mineral Lands Leasing Act of 1920 and that the economy purchase orders frustrated Plaintiff’s contract performance. Defendant challenged the denial of specific performance.
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