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Contracts Keyed to Summers
BRC Rubber & Plastics, Inc. v. Continental Carbon Co.
Citation:900 F.3d 529
BRC Rubber & Plastics, Incorporated (“BRC”) (plaintiff) and Continental Carbon Corporation (“Continental”) (defendant) entered into a five-year agreement, under which Continental agreed to sell BRC approximately 1.8 million pounds of carbon black (a raw material used in rubber products) annually. Per the agreement, the prices for carbon black “were to remain firm.” In addition, Continental had a right to review and meet any better offers that BRC received. In 2010, Continental began shipping carbon black to BRC and continued to do so regularly over the next year. In March 2011, demand for carbon black began to exceed Continental’s ability to produce it. BRC placed another order for carbon black, but Continental was unable to fulfill it. As a result, BRC had to purchase carbon black from another supplier at a higher price than that set forth in its agreement with Continental. Two days later, Continental offered to ship carbon black to BRC at a price increase up to $.06 per pound. BRC sought confirmation twice as to when Continental would fulfill their outstanding order for carbon black. Both times Continental replied that they would “do the best [they] can.” The third time BRC reached out, Continental informed them that it would ship one railcar of carbon black the following day. Within a week, Continental emailed BRC seeking to increase prices again. BRC sued Continental to recover costs it incurred in purchasing carbon black from another supplier.
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