Laclede Gas Co. v. Amoco Oil Co.

522 F.2d 33 (8th Cir. 1975)

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Nature of the Case

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Facts

Laclede Gas Co. (P) and Amoco Oil Co. (D) agreed to respectively distribute and supply natural gas until natural gas mains were extended into certain residential areas. P could terminate on 30-day notice at the end of any year or when natural gas mains were established in those residential areas. D had no right of termination unless the subdivisions subsequently converted to natural gas. The agreement functioned for some time until the number of developments under the agreement had shrunk to eight. They were all mobile home parks. During the winter of 1972-73, D experienced a shortage of propane and voluntarily placed all of its customers including P on 80% allocation. P objected, and the shortage was relieved. Then D noticed P that its posted price would be increased by three cents per gallon. P objected, and D terminated the agreement; 'the agreement lacks mutuality.' P sought injunctive relief. The trial court agreed with D. P appealed. The appeals court held there was a contract and it was breached by D.