Oglebay v. ARMCO
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
| Oglebay v. ARMCO | |
| Court | Ohio Supreme Court |
|---|---|
| Citation | 52 Ohio St.3d 232, 556 N.E.2d 515 |
| Date decided | July 11, 1990 |
Facts
- Oglebay Norton Co. = "Oglebay" = plaintiff = iron ore shipper = iron ore miner = this company is defunct as of 2024
- Armco, Inc. = The American Rolling Mill Company (ARMCO) = "ARMCO" = defendant = AK Steel = a steel producer in Ohio = this company is defunct as of 2024 = iron ore buyer
- The 2 parties entered into a long-term contract in 1957.
- The parties agreed on a flexible shipping rate based on the "regular net contract rate."
- In the 1980s, the iron & steel industry suffered a down-turn.
- A dispute arose over the shipping rate in 1985.
Procedural History
- In 1986, Oglebay filed a declaratory judgment action asking the court to determine the contract shipping rate for ARMCO.
- ARMCO counter-claimed that the parties' contract should be declared un-enforceable.
- Oglebay won in the bench trial.
- The trial court determined that a shipping rate of $6.25/ton of ore was reasonable in 1986.
- The court ordered the 2 parties to mutually agree on shipping rates through year 2010. The parties were allowed to mediate.
Issues
Is a contract still enforceable if 1 of its keys terms [price] fails?
Holding
Yes. A contract is still enforceable if 1 of its key terms fails so long as the parties still intend to be bound by their agreement.
Judgment
Affirmed
