US Salt, Inc. v. Broken Arrow, Inc.

65 UCC Rep. Serv. 2d 127 (2008)

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US Salt, Inc. v. Broken Arrow, Inc.

United States District Court for the District of Minnesota
65 UCC Rep. Serv. 2d 127 (2008)

  • Written by Nathan Benedict, JD

Facts

US Salt, Inc. (plaintiff) contracted with Broken Arrow, Inc. (defendant) to purchase at least 15,000 tons of salt per year. Broken Arrow’s production process created four grades of salt: extra coarse, coarse, medium, and fine. The contract incorporated data sheets that referred to these four grades, but the contract contained no language requiring US Salt to purchase any grade in any amount. The contract also contained a merger clause stating that the written contract was the entire agreement between the parties. In November 2004, Broken Arrow sent a shipment of nonconforming salt that was gray and not washed. US Salt demanded that Broken Arrow cure the nonconforming shipment. Broken Arrow provided a credit to US Salt and sent conforming shipments from May 2005 to August 2005. Broken Arrow then stopped sending shipments. In March and April 2006, US Salt requested assurances from Broken Arrow that it would continue to perform on the contract, which Broken Arrow did not provide. US Salt then sued Broken Arrow for breach of contract and for violation of the covenant of good faith and fair dealing.

Rule of Law

Issue

Holding and Reasoning (Kyle, J.)

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