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Contracts Keyed to Farnsworth
Columbia Nitrogen Corp. v. Royster Co.
Citation:451 F.2d 3
Royster Company (“Royster”) (plaintiff) was a manufacturer and seller of mixed fertilizers, whose key ingredients included nitrogen, phosphate, and potash. Royster built a phosphate production facility. Royster contracted to sell Columbia Nitrogen Corporation (“Columbia”) (defendant) a minimum of 31,000 tons of phosphate a year for a period of three years. Phosphate prices plunged and Columbia ordered less than one tenth of the scheduled amount of phosphate during the first year. Royster sued Columbia for damages.
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