Oglebay Norton v. Armco

Oglebay Norton v. Armco - Ct found that the continued...

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Page: 257 Class Notes Case: Court / Date: Judge: Facts: Issue: Holding: Rule: Oglebay Norton Co. V. Armco, Inc. Sup. Ct. of Ohio (1990) Armco (D) and Oglebay (P) entered a long-term shipping contract. The contract based the rates off of “regular net contract rates” published by shippers. If this regular rate did not exist, the contract provided that the parties would agree on a rate based on similar types of shipping. They renegotiated 4 times. Starting in 1983 they could not agree on a rate and squabbled for the subsequent 3 years. Trial ct. determined that the rate should be based off of similar industry charges and determined the rate to be $6 a ton. D appeals. D. claimed that it did not intend to be bound if pricing mechanism failed.
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Unformatted text preview: Ct. found that the continued business relationship and intermingling of the companies showed intent to be bound. Restatement 2d sec 33 comment 3 provides for the court to determine the price when intentionally bound parties can not agree on pricing. Whether a party enforce a long-term service contract when the price is not specified and the parties must periodically resort to the ct. to determine a reasonable price. Yes, if both parties are intentionally bound to a service agreement, but can not agree on price, the price may be determined by the ct. through reasonable industry comparison methods....
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  • Spring '08
  • long-term shipping contract, regular net contract, reasonable industry comparison, similar industry charges, long-term service contract

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Oglebay Norton v. Armco - Ct found that the continued...

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