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Almetals, Inc. v. Wickeder Westfalenstahl, GmbH

67 UCC Rep. Serv. 2d 562 (2008)

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Almetals, Inc. v. Wickeder Westfalenstahl, GmbH

United States District Court for the Eastern District of Michigan

67 UCC Rep. Serv. 2d 562 (2008)

Facts

Almetals, Inc. (plaintiff) entered into a requirements contract with Wickeder Westfalenstahl GmbH (Wickeder) (defendant). Under the contract, Wickeder agreed to provide clad metal to Almetals, which Almetals then sold to its customers in North America. Wickeder was the only supplier of the particular clad metal that Almetals needed, and no other manufacturer was able to produce the product. Under the "Customer Order and Protection Clause" of the contract, Wickeder agreed that after the agreement terminated, it would continue to honor any existing commitments to supply orders or complete programs for a period of 10 years. Wickeder later insisted on a cash-on-delivery (COD) payment term from Almetals. Almetals sought an injunction against Wickeder to prevent it from imposing the COD term. The district court found that the COD term was a violation of the parties’ contract and issued a temporary restraining order, prohibiting Wickeder from imposing the COD term. Almetals then sought a permanent injunction.

Rule of Law

Issue

Holding and Reasoning (Edmunds, J.)

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