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Lane Enterprises, Inc. v. L.B. Foster Co.
Superior Court of Pennsylvania
700 A.2d 465 (1997)
Lane Enterprises, Inc. (Lane) (plaintiff) orally agreed to perform a coating process on various construction parts for L.B. Foster Co. (Foster) (defendant) in two separate orders. The agreement was confirmed by Foster’s purchase order, which also specified that the coating meet the standards of and gain approval from the applicable state department. Lane coated the first order of parts and had them inspected by the state department. The inspector found contaminants under the coating, but allowed shipment pending approval and re-application of the coating. Lane informed Foster of the contaminants and inquired whether they should begin on the second order or whether Foster would be hiring a different company for the second order. The state department informed the parties that it would accept the parts if they were repaired. Lane repaired the parts and requested payment. Foster sent a letter to Lane asking whether it intended to perform the coating under the second order. Foster also informed Lane that it would not pay under the first order unless Lane assured that it would commit to performing the second order. Lane responded that it would not commit to the second order until it was paid. Foster sent a second request for assurances, but eventually another company was hired to complete the coating under the second order. Foster filed a writ of summons in the trial court. Lane also filed suit. The trial count found in Lane’s favor and awarded it the outstanding amount for the first order. Foster appealed to the Superior Court of Pennsylvania.
Rule of Law
Holding and Reasoning (Cirillo, J.)
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