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Contracts Keyed to Marshall
Laclede Gas Co. v. Amoco Oil Co.
Citation:
522 F.2d 33 (8th Cir. 1975)Facts
On September 21, 1970, Midwest Missouri Gas Company (now Laclede), and American Oil Company (now Amoco), the predecessors of the parties to this litigation, entered into a written agreement which was designed to provide central propane gas distribution systems to various residential developments in, Missouri, until such time as natural gas mains were extended into these areas. The agreement contemplated that as individual developments were planned the owners or developers would apply to Laclede for central propane gas systems. If Laclede determined that such a system was appropriate in any given development, it could request Amoco to supply the propane to that specific development. During 1972-73 Amoco experienced a shortage of propane and voluntarily placed all of its customers, including Laclede, on an 80% Allocation basis, meaning that Laclede would receive only up to 80% of its previous requirements. Amoco sent a letter dated May 14, 1973, informing Laclede that it was terminating the agreement effective May 31, 1973. It claimed it had the right to do this because the Agreement lacks mutuality.
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