Editing NIPSCO v. Carbon County

{{Infobox Case Brief
|court=7th Circuit
|citation=799 F.2d 265
|date=August 13, 1986
|subject=Contracts
|facts=*Northern Indiana Public Service Co. = "NIPSCO" = plaintiff = coal buyer = electric utility company
*Carbon County Coal Co. (Carbon County) = coal mine company = company with a Wyoming coal mine on federal land = coal seller
*In 1978, the 2 parties contracted for NIPSCO to receive 1,500,000 (1.5 million) tons of coal/year for 20 years.
*The 2 parties agreed on $24/ton of coal subject to change.
*The contract included a ''force majeure'' clause.
*Coal prices went up:
{{Timeline|$24/ton of coal|1978|1985|$44/ton of coal}}

*NIPSCO found a cheaper source of electricity; so, NIPSCO suspended the coal shipments from Carbon County.
|procedural_history=* NIPSCO sued Carbon County in federal court in Indiana seeking a declaratory judgment that NIPSCO was excused from buying coal from Carbon County under the ''force majeure'' clause.
* NIPSCO lost.
* The jury awarded Carbon County $181,000,000 (181 million).
*
|issues=#Does monetary loss resulting from economic risk-taking 
#*constitute a force majeure or
#*satisfy the doctrines of 
#*#frustration of purpose or
#*#impossibility?
#Does the doctrine of illegality automatically void a contract?
|arguments=NIPSCO argued that the contract was un-enforceable because it violated the '''Mineral Lands Leasing Act''' of 1920. https://www.blm.gov/sites/blm.gov/files/MineralLeasingAct1920.pdf
|holding=# No. Monetary loss resulting from economic risk-taking doesn't constitute a ''force majeure'' or satisfy either the doctrines of frustration or impossibility.
# No. The doctrine of illegality doesn't automatically void a contract.
|reasons=[[Richard A. Posner]]: The Indiana commission's authorization of the fuel surcharge didn't constitute a ''force majeure'' excusing NIPSCO's performance.

Posner: Also, this wasn't an inherently illegal contract. The Department of Interior & DOJ hadn't objected to Carbon County's mining.
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|link=https://www.quimbee.com/cases/northern-indiana-public-service-co-v-carbon-county-coal-co
|source_type=Video summary
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|link=https://law.justia.com/cases/federal/appellate-courts/F2/799/265/117938/
|case_text_source=Justia
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