Pennsy v. American Ash
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Pennsy v. American Ash | |
Court | Pennsylvania Superior Court |
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Citation | 895 A.2d 595 |
Date decided | March 17, 2006 |
Facts
- Lobar, Inc. = "Lobar" = contractor that won a contract to a school construction site in York County, Pennsylvania
- Pennsy Supply, Inc. = "Pennsy" = plaintiff = sub-contractor of Lobar
- The sub-contract required Pennsy to use a base aggregate which could be AggRite
- American Ash Recycling Corp. of Pennsylvania = "American Ash" = defendant = supplier of AggRite for free = a recycling company trying to rid itself of garbage
- Pennsy took 11,000 tons of AggRite from American Ash & used it in the paving work
- Pennsy completed the paving for the school in December 2001
- Within 2 months, the pavement was already cracking!
- Pennsy agreed to removed AggRite (which is a hazardous material [hazmat]) at no cost to the school
- For us here, we can equate "AggRite" with garbage, trash, waste, & a hazmat
- American Ash declined to dispose of the removed AggRite
- Pennsy incurred significant costs in the removal & disposal of the AggRite (which wasn't needed in the 1st place)
Procedural History
- Pennsy sued American Ash in Pennsylvania state court alleging breach of contract.
- The state court dismissed Pennsy's complaint.
- The trial court ruled that there was no consideration between Pennsy & American Ash. Thus, there was no enforceable contract.
- The trial court ruled that the AggRite was a gift (albeit useful & troublesome) from American Ash to Pennsy.
- In other words, Pennsy lost.
Issues
Is there sufficient consideration to enforce a contract even if the parties haven't bargained for all of the contract's terms?
Holding
Yes. If an un-bargained-for condition (the contract requirement to use AggRite) would benefit the promisor (American Ash) at a detriment to the promisee (Pennsy), then there's sufficient consideration to enforce the contract.
Judgment
Reversed