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NIPSCO v. Carbon County: Difference between revisions
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*NIPSCO found a cheaper source of electricity; so, NIPSCO suspended the coal shipments from Carbon County. | *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. | |||
|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 ''force majeure''. | * 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? | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://www.quimbee.com/cases/northern-indiana-public-service-co-v-carbon-county-coal-co | |link=https://www.quimbee.com/cases/northern-indiana-public-service-co-v-carbon-county-coal-co | ||
Revision as of 18:16, December 13, 2023
| NIPSCO v. Carbon County | |
| Court | 7th Circuit |
|---|---|
| Citation | 799 F.2d 265 |
| Date decided | August 13, 1986 |
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:
year 1978
$24/ton of coal
$44/ton of coal
year 1985
- 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?
