Latest Case: Mid-American Salt LLC v. Morris County Cooperative Pricing Council (Business Law)

Upcoming Execution Tests Trump Administration’s Commitment to Religious Liberty

AUSTIN SARAT

Austin Sarat—Associate Provost, Associate Dean of the Faculty, and William Nelson Cromwell Professor of Jurisprudence and Political Science at Amherst College—comments on a religious liberty issue presented by the upcoming execution of Wesley Ira Purkey. Sarat explains that Purkey’s spiritual advisor is unable to attend Purkey’s execution due to the COVID-19 pandemic, and he points out that for the federal government to carry out the execution anyway would belie its purported commitment to religious liberty.

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Mid-American Salt LLC v. Morris County Cooperative Pricing Council

Docket: 18-2112

Opinion Date: July 6, 2020

Judge: Hardiman

Areas of Law: Business Law, Contracts, Government Contracts

The Council handles contracts for over 200 New Jersey municipalities, police departments, and school districts. Mid-American sells bulk road salt. The Council's members estimated their salt needs for the 2016-17 winter. The Council issued a comprehensive bid package, anticipating the need for 115,000 tons of rock salt. MidAmerican won the contract, which stated: There is no obligation to purchase [the estimated] quantity. As required by the contract, Mid-American obtained a performance bond costing $93,016; imported $4,800,000 worth of salt from Morocco; and paid $31,250 per month to store the salt and another $58,962.26 to cover it. Mid-American incurred at least another $220,000 in finance costs and additional transportation costs. Council members purchased less than five percent of the estimated tonnage. Mid-American claims “several” Council members purchased salt from MidAmerican’s competitors, who lowered their prices after MidAmerican won the contract. Mid-American sued the Council and 49 of its members, alleging breach of contract, breach of the covenant of good faith and fair dealing, and bad faith under UCC Article 2. The Third Circuit affirmed the denial of relief. No valid requirements contract existed here because the contract was illusory. These sophisticated parties were capable of entering into precisely the contract they desired. Neither the Council nor its members ever promised to purchase from Mid-American all the salt they required