Northern Corp. v. Chugach Electric Assoc.

Facts

The Appellant, Northern Corp. (the "Appellant"), entered into a contract with the Appellee, Chugach Electric Association (the "Appellee"), on August 3, 1966. The Appellant was tasked to repair and protect a dam. The Appellant's bid to do the work was $63,655. The Appellant was given 60 days to complete the job, with time beginning to run from August 29, 1966. In its proposal, the Appellee indicated that the necessary rock to do the job was located near the dam. The Appellant began by using an alternate source of suitable rock, but that rock was soon exhausted. The Appellant then proceeded to the quarry designated by the Appellee, but learned that that rock was not suitable for the purposes of preparing and protecting the dam. The parties then reformed their agreement and the Appellant was allowed to take rock from the alternate side of the lake and transport it over the ice to the dam site. Specifically, the new agreement provided "[r]ock will be quarried in suitable sizes and quantities to complete the project and will be stockpiled in or near the quarry, or quarries, mentioned above for transport across Cooper Lake to the dam site when such lake is frozen to a sufficient depth to permit heavy vehicle traffic thereon." This agreement was memorialized in a letter from the Appellee to the Appellant dated September 27, 1966. The contract price was increased by $42,000 to cover these increased expenses. The Appellant attempted unsuccessfully for about two years to transport machinery and the necessary rock across the ice. The Appellant lost machinery and two truck drivers lost their lives after falling through the ice. On March 28, 1996, the Appellant informed the Appellee that the contract was terminated due to the impossibility of performance. The Appellant filed a lawsuit seeking damages for costs incurred while attempting to perform. The trial court discharged both parties from their obligations under the contract, but neither party was awarded damages.