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Contracts Keyed to Knapp
Pennsy Supply, Inc. v. American Ash Recycling Corp. of Pennsylvania
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Paving materials known as Treated Ash Aggregate (TAA) or AggRite, was obtained without cost from American Ash Recycling Corp. of Pennsylvania (American Ash) (D) by a paving subcontractor by name Pennsy Supply, Inc. (Pennsy) (P). These materials were used by the plaintiff in the construction project of driveways and parking lot in a school district. After the construction of the driveways and parking lot, the paving started to crack extensively. Pennsy (P) took care of this damage without charging the district for the repairs. This repair work carried out by Pennsy (P) required the plaintiff to remove and appropriately dispose the AggRite which the state had classified as a hazardous waste material. However, American Ash (D) refused to arrange for the removal and disposal of the AggRite after Pennsy (P) notified it to do so. Pennsy (P) conveyed his intention to recover costs in a notice to American Ash (D) and also to sue American Ash (D) for promissory estoppel, breach of warranty of fitness for a particular purpose, breach of implied warranty of merchantability and breach of contract. American Ash (D) objected to all these pleadings and this was sustained by the trial court on the ground that its finding showed that any alleged agreement between the parties was unenforceable for lack of consideration. No evidence that disposal costs were part of any bargaining process or that American Ash (D) offered the AggRite with intent to avoid disposal costs was found by the trial court. However, the state’s intermediated court of appeals granted review
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