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Contracts Keyed to Whaley
Totem Marine Tug & Barge, Inc. v. Alyeska Pipeline Service Company
Citation:
Supreme Court of Alaska, 1978. 584 P.2d 15.Facts
Totem Marine Tug & Barge, Inc. (Plaintiff) contracted with Alyeska Pipeline Service Company (Defendant) to transport pipeline construction materials from Houston, TX to southern Alaska. To carry out the contract, plaintiff chartered a barge and a tug to transport the cargo. The materials were supposed to be delivered by August 15, 1975, but from the start, plaintiff encountered numerous problems when performing the contract. Defendant informed plaintiff that 1,800 to 2,100 tons of uncoated pipe were to be loaded in Houston, and that another 6,000 to 7,000 tons of material would be added to the barge at later stops in the west coast. Plaintiff had predicted it would take 3 days to load the initial materials on the barge. When plaintiff arrived in Houston, defendant had roughly 7,000 tons of material to be loaded. The materials had been improperly piled, and the process took significantly longer than expected. The vessels proceeded to travel more slowly due to this extra load. Defendant was aware of the delays. By September 14, 1975, plaintiff still had not reached Alaska, and defendant terminated the contract, refusing to give a reason for doing so. Following the termination, plaintiff requested that defendant pay the corresponding contract termination invoices. Plaintiff was under grave financial stress, and possibly facing bankruptcy. Defendant understood the plaintiff’s situation, and acknowledged that it owed plaintiff something between $260,000 and $300,000. Defendant settled with plaintiff for $97,500 and plaintiff signed a settlement and release agreement.
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