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Contracts Keyed to Marshall
Johnson Controls, Inc. v. TRW Vehicle Safety Systems, Inc.
Citation:
491 F. Supp. 2d 707 (2007)Facts
TRW notified JCI that due to the increased cost of materials, it would be raising its prices for components sold to JCI. (See Pls.’ Ex. H.) JCI responded that it could not pay higher prices for the parts it purchased from TRW because it could not control the pricing set by General Motors, and recommended that TRW discuss its pricing concerns directly with General Motors. On October 11, 2006, when JCI refused to negotiate a price increase, TRW reconfirmed its intent to not renew the purchase orders and threatened to stop shipping parts as of October 29, 2006. JCI’s complaint alleges that TRW breached the contracts embodied in Purchase Orders 003 and 031 when it threatened to stop shipping parts in October 2006.
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