Orange and Rockland Utilities, Inc. v. Amerada Hess Corp.
Supreme Court of New York, Appellate Division, Second Department
59 A.D.2d 110 (1977)
In December 1969, Orange and Rockland Utilities, Inc. (Orange) (plaintiff) contracted to purchase fuel at a fixed price per gallon from Amerada Hess Corp. (Hess) (defendant). Orange and Hess agreed that fuel should be supplied through a requirements contract lasting for a period of five years. Orange provided estimates of the requirements it would use for each year of the contract. Orange also included a clause stating that it could require an unlimited amount of fuel from Hess should Orange’s requirements increase. Shortly after Hess began performance on the contract, however, the price of fuel almost doubled. Additionally, Orange began routinely demanding that Hess supply up to sixty percent more fuel than Orange originally estimated requiring in the contract. The reason for Orange’s greatly increased demand was that Orange discovered it could make more money buying the fuel from Hess at the fixed price under the contract and reselling the fuel to other parties at the higher market price. This arrangement was not contemplated by Orange and Hess in the original requirements contract. Hess refused to supply to Orange any extra fuel beyond ten percent above the quantities estimated in the contract. Orange brought suit in New York state court against Hess seeking to enforce the contract. The trial court held that Orange did not incur its requirements under the contract in good faith, and denied relief to Orange. Orange appealed.
Rule of Law
Holding and Reasoning (Margett, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 170,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.