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City of Scottsbluff v. Waste Connections of Nebraska, Inc.
Citation:
282 Neb. 848, 809 N.W.2d 725 (2011)Facts
In 1992, Plaintiff entered into a contract with Defendant for the removal of waste. The contract expired in 2005, but after it ended, Plaintiff entered into a short-term agreement with Defendant, which expired in April 2008. Near the end of the contract, Plaintiff began to look at cheaper options and told Defendant that it would not renew the contract if it found a cheaper option.
In July 2007, Plaintiff found a cheaper option by entering into a contract with the neighboring city, but it would only begin in July 2008. Defendant agreed in July 2007 to continue under the short-term contract until July 2008. However, after hearing the short-term contract would not be renewed, Defendant unilaterally increased the rate to $60 per ton, up from $42.50 per ton.
Defendant claimed that the price was increased to compensate for losing Plaintiff’s business. It appeared that Defendant implicitly threatened to stop hauling the waste unless the increased price was paid. Plaintiff objected to the increased price, but Defendant refused to lower the cost, and Plaintiff paid the increased price until the short-term contract ended in July 2008.
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