Roth Steel Products v. Sharon Steel Corp.

705 F.2d 134 (6th Cir. 1983)

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Nature of the Case

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Facts

Sharon Steel Corp. (D), made a below-published prices contract with Roth Steel (P) for P to buy 200 tons of steel per month for $148 per ton for pickled and $140 per ton for rolled black for the entire year. Within six months the supply of steel fell, and prices began to rise substantially, D told P that it would no longer sell steel at below published prices. P agreed with the new terms for the last six months of the contract because P had no second source of supply. D's shipments in the last six months were often late, and P was forced to pay even higher prices. D attributed the additional problems to material shortages and regulatory problems. P learned that the delivery problems were due to D's practice of selling steel to its subsidiary at premium prices. P sued for breach. The trial court found that D's modification was not done in good faith. P was awarded damages; the difference between the new contract price and the original contract price. D appealed and P cross-appealed the denial or prejudgment interest.