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Contracts Keyed to Ayres
Northern Indiana Public Service Co. v. Carbon County Coal Co.
Citation:799 F .2d 265.
The parties entered into a 20-year contract where the plaintiff agreed to sell and the defendant agreed to buy approximately 1.5 million tons of coal every year for 20 years at approximately the price of $24 per ton. A few year later the contract price had risen to $44 per ton but because of changed economic circumstances the defendant was able to buy electricity prices from elsewhere below the new price. Defendant sought declaratory judgment that it was excused from the contract. The plaintiff counterclaimed and moved for a preliminary injunction and specific performance.
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