Pennsylvania undertook the erection of a Bridge and selected American Bridge Company as the prime contractor. P was awarded a subcontract for the placement of the bridge's concrete decks and parapets and contracted with D for the delivery of ready-mixed concrete. The contract provided that D would supply approximately 35,000 cubic yards of ready-mixed concrete at a rate of 40 cubic yards per hour and at times specified by P. Having its plant close to the job site, D was equipped to prepare and deliver large quantities of concrete. P's progress was hindered by three lengthy strikes in the spring and summer of 1970, 1971, and 1972 which postponed completion of its contract from July of 1972 to October of 1972. The work was also delayed by rejections of concrete that failed to meet state specifications, although the number of rejections was within expectations for such a project. The number of weeks during which the pours were made remained substantially the same as was originally planned. P's progress was frustrated by D's frequent failures to make deliveries in compliance with instructions. Deck pours originally scheduled for the mornings often extended into the afternoons and evenings, and created overtime labor expense. P considered securing other sources but found no real alternatives. The only other source of ready-mixed concrete in the area was the Trap Rock Company, located near D's plant. Trap Rock was not certified to do state work in 1971, and its price was higher. The production facilities at Trap Rock were limited, as was the number of trucks. D continued to assure P that deliveries would improve. On June 21, 1972, the Pennsylvania Department of Transportation ordered all construction halted until the quality of D's service could be discussed at a conference. D made renewed assurances of improved performance, and state officials allowed work to resume on June 26, 1972. From that date until July 20, 1972, D's services improved significantly, although it still did not consistently meet P's instructions. In the months following and until completion in October of 1972, D's performance continued to be uneven and unpredictable. On June 14, 1972, P again approached Trap Rock, and on July 11, 1972, Trap Rock was certified by the state and met competition on price. P decided to continue with D as its sole supplier. P sued D. The trial judge entered judgment in favor of P in the amount of $35,401.28. The court concluded that 'as of July 12, 1972, P had an obligation to utilize Trap Rock as a supplemental supplier . . . in order to mitigate any possible 'delay damages' resulting from Warner's service.' the court did not award P all the delay damages it sought, allowing only $12,534 for overtime which had been paid on days when D's deliveries were late before, but not after, July 12, 1972. P appealed.

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