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Resources Investment Corp. v. Enron Corp.
0United States District Court for the District of Colorado
669 F.Supp. 1038 (D. Colo. 1986)
Enron Corporation (Enron) (defendant) agreed in various contracts to buy a certain amount of gas each year from Resources Investment Corporation (Resources) (plaintiff) over a period of 18 years. The contracts provided that Enron would pay for the entire specified amount of gas each year, regardless of whether Enron accepted delivery of the whole quantity. If Enron did not accept the entire amount of gas in a year, the unused amount would be rolled over and available to Enron in the following years. Enron eventually breached the contracts. Resources brought suit against Enron, seeking damages and a declaration that Enron must continue to perform all obligations related to the gas-purchase agreements. Enron asserted various counterclaims and affirmative defenses, arguing that its breach was excused by numerous conditions occurring subsequent to the execution of the contracts. Specifically, Enron contended that foreign competition, unusually warm winter weather, economic recession, unforeseeable changes in the gas market, and passage of related federal and state regulations had frustrated the purposes of the contracts and made Enron’s performance impossible or commercially impracticable. Resources moved to dismiss all of Enron’s counterclaims and most of Enron’s affirmative defenses.
Rule of Law
Holding and Reasoning (Kane, J.)
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