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Louisiana Power & Light Company v. Allegheny Ludlum Industries, Inc.

United States District Court for the Eastern District of Louisiana
517 F.Supp. 1319 (1981)

Written by Mary Pfotenhauer, JD

Facts

Louisiana Power & Light Company (LP&L) (plaintiff) contracted with Allegheny Ludlum Industries, Inc. (Allegheny) (defendant) to provide tubing for use at LP&L’s nuclear power plant. A cancellation provision under the contract allowed LP&L, but not Allegheny, to cancel the order. After the contract was executed, but before Allegheny delivered the tubing, Allegheny requested additional compensation from LP&L for performance under the contract, because the costs of materials and labor had increased 38 percent since the contract’s execution. According to a manager at the power plant, performance under the terms of the contract would have reduced the planned profit for the plant for the year. LP&L refused to renegotiate the contract, and Allegheny refused to deliver the tubing at the price provided in the contract. LP&L obtained tubing from another party and sued Allegheny for breach of contract. Allegheny asserted defenses of commercial impracticability, unconscionability, and bad faith. LP&L moved for summary judgment.

Rule of Law

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Issue

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Holding and Reasoning (Gordon, J.)

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