NIPSCO, BREACH Flashcards
1
Q
NIPSCO v. Carbon County
A
NIPSCO and Carbon County entered into contract or coal for 20 years. Escalation provisions according CPI. Price of coal rose, but NIPSCO couldn’t pass increased costs along to its customers
o Force Majeure: NIPSCO asks court to invoke contract’s force majeure clause: Act of God. The clause exists to preserve the efficiency of contracts by preventing the parties from having to go through every possible contingency
o Regulation preventing NIPSCO from passing prices along to consumers is not covered by this.
