Kaiser v. Producer’s Gas
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| Kaiser v. Producer’s Gas | |
| Court | 10th Circuit |
|---|---|
| Citation | 870 F.2d 563 |
| Date decided | March 8, 1989 |
Facts
*Kaiser-Francis Oil Co. = "Kaiser" = plaintiff = a seller of natural gas
*Producer’s Gas Co. = "PGC" = defendant = a purchaser & re-seller
*The 2 parties entered into a contract with a force majeure provision in Oklahoma.
*Later, natural gas prices plummeted such that PGC couldn't re-sell the gas. To avoid losing profits, PGC refused to purchase any more gas.Procedural History
Kaiser sued. The district court granted summary judgment for Kaiser.
Issues
Does a drop in the price of a contracted good constitute a failure of supply or demand constituting a force majeure?
Arguments
PGC argued that it couldn't turn up a profit any more by re-selling natural gas.
Holding
No. A mere change in demand (& the resulting price decrease) doesn't constitute a failure of demand.
Judgment
Affirmed
