Case Name, Citation, and Court Lns Investment Company, Inc. v. Phillips 66 Co.
731 F. Supp. 1484 (1990) United States District Court Summary of the Key Facts A. Plaintiff was Compu-Blend Corporation which blended, labeled, and packaged quart plastic bottles of motor oil for defendant Phillips 66 Company.
B. On July 29, 1986 Peter Buhlinger, defendant’s manager of lubricants wrote a letter to Dan Tutcher, plaintiff’s vise president.
C. Letter stated that Phillips will buy plastic bottles from CBC and to take delivery of a maximum of 4 million bottles. Those bottles had to be made by December 31, 1986.
D. Letter also stated that if CBC is not able to produce full 4 million quarts by December 31, 1986 this agreement shall be considered satisfied.
E. On October 16, 1986 Laughlin stated that they definitely do not want bottles on the shelf of the quality submitted.
F. On December 16, 1986 Buhlinger wrote that defendant would not renew any commitments to purchase goods from plaintiff after March 31, 1987 due to plaintiff poor performance.
G. On May 12, 1987 plaintiff filled suit that defendant breached the July 29 agreement by failing to purchase plaintiff’s full output of plastic bottles through December 31, 1986.
H. Plaintiff failure to provide either the quality or quantity of goods contemplated by July 29 agreement entitled defendant to suspend its performance.
I. Final decision was made and plaintiff’s continual excuses for failing to perform, unaccompanied by corresponding remedial action, cannot be deemed adequate assurance under the code of Uniform Commercial Code. In view of this conclusion, defendant did not breach the contract by suspending performance in December, 1986 and judgment will be entered in its favor.
The Issue Did plaintiff failed to provide defendant with adequate assurance of its future performance and did defendant breach the contract for...