Orange And Rockland Utilities, Inc. v. Amerada Hess Corp

59 A.D.2d 110, 397 N.Y.S.2d 814 (1977)

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Nature of the Case

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Facts

Amerada (D) agreed to supply the requirements of Orange (P) for its fuel oil. The price of the contract was fixed at $2.14 per barrel. Estimates of P's demand were included in the contract, and those estimates reflected the intent of both parties that P wanted to use as much natural gas as possible. Within 5 months of the execution of the agreement, the price of oil began a steady and unanticipated increase. In addition, P notified D that its use of fuel oil would be substantially higher than the estimate given in the contract. Eventually, D agreed only to supply the agreed upon contract estimates and up to a 10% overage. D performed that part of the contract but refused to deliver more. P sued D. The trial court determined that P's requirements were not incurred in good faith. P appealed.