Industrial Natural Gas Co. v. Sunflower Natural Gasoline Co.

71 N.E.2d 199, 330 Ill. App. 343, 1947 Ill. App. LEXIS 205
CourtAppellate Court of Illinois
DecidedJanuary 20, 1947
DocketTerm No. 46F9
StatusPublished
Cited by9 cases

This text of 71 N.E.2d 199 (Industrial Natural Gas Co. v. Sunflower Natural Gasoline Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Natural Gas Co. v. Sunflower Natural Gasoline Co., 71 N.E.2d 199, 330 Ill. App. 343, 1947 Ill. App. LEXIS 205 (Ill. Ct. App. 1947).

Opinion

Mr. Justice Bartley

delivered the opinion of the court.

This is an appeal by the defendants, Sunflower Natural Gasoline Company, Sunflower Gasoline Corporation and Sunflower Petroleum Products Corporation, hereinafter called the defendants (whenever this "opinion refers, to defendant or defendants, it is meant to refer to the defendant or defendants to which the circumstances may apply), from that portion of a decree of the circuit court of Marion county which awarded damages to the plaintiff appellee, Industrial Natural Gas Company, hereinafter referred to as plaintiff, in the sum of $200,000, for a breach of contract of July 21, 1942 providing for the sale by the defendants to the plaintiff of natural gas. The appellees, First National Bank of Philadelphia, et al. were intervening plaintiffs and anywhere in this opinion that it may be necessary to refer to them, they will be particularly identified.

A complaint was filed March 14, 1944 and alleged, among other things, that by a certain agreement dated July 21, 1942 between the plaintiff and two of the defendants, Sunflower Natural Gasoline Company and Sunflower Gasoline Corporation, plaintiff agreed to buy and the defendants agreed to sell certain quantities of natural gas; that subsequent to the execution of said agreement, the defendant, Sunflower Petroleum Products Corporation, by merger, consolidation or otherwise, acquired all of the assets of defendants, Sunflower Natural Gasoline Company and Sunflower Gasoline Corporation, and assumed their obligations including the said agreement of July 21,1942; that the plaintiff was engaged in the business of buying natural gas and distributing and selling same to industrial consumers; that said agreement of July 21, 1942 is the only agreement which plaintiff had, or at any time has had, for the purchase of natural gas and constitutes the sole source of supply of natural gas available to plaintiff for delivery and sale by plaintiff to its customers; that the plaintiff entered into business in reliance on said agreement of July 21, 1942 and in reliance thereon, entered into an agreement with Mount Vernon Car Manufacturing Company and J. P. Devine Manufacturing Company, Inc., for .delivery' and sale to them of natural gas at their plants in Mount Vernon, Illinois, to the extent of the entire fuel requirements of said companies.

The complaint further alleged that, as contemplated in the agreement of July 21,1942, plaintiff constructed and put into operation a pipe line for the purpose of supplying said car companies at a cost of approximately $120,000 and thereafter purchased and constructed other pipe lines and equipment at a cost of approximately $50,000 and incurred great additional expense to procure and arrange to serve plaintiff’s customers; that the plaintiff has procured and is now serving several industrial consumers in addition to the car companies and has been requested by numerous other industrial consumers to supply them with natural gas; that its present customers require a daily delivery in excess of 3,500,000 cubic feet of natural gas and that plaintiff has a potential market of another 2,500,000 cubic feet of natural gas per day; that since November 3, 1943 defendant has never furnished plaintiff more than 2,500,000 cubic feet on any one day and since that date the quantities of natural gas furnished have constantly decreased until plaintiff at the time of filing the complaint, was furnishing to its customers less than an average of 750,000 cubic feet per day; and that at least since November 3, 1943 defendants failed to deliver to plaintiff the quantities of natural gas to which the plaintiff is entitled pursuant to the provisions of the agreement of July 21, 1942; that plaintiff made numerous demands to defendants to supply the gas required by said agreement of July 21, 1942 but that defendants have failed and refused to do so; that plaintiff has, at all times, been ready and willing to accept delivery of and pay for all natural gas required to supply the demands of plaintiff’s customers.

It is further alleged that because of the breach by the defendants of said agreement of July 21, 1942, plaintiff has been unable to supply even the minimum requirements of its present customers; that as a result, plaintiff has irretrievably lost some of its actual market and is continuing to lose more and that its business is being rapidly destroyed, and will be completely destroyed unless the defendants be required to perform and carry out their obligation under said agreement of July 21,1942; that apart from the loss of plaintiff’s investment, if said agreement is not substantially performed, the actual losses previously suffered and which may hereafter be suffered, and in addition thereto, the loss of profits previously suffered and which may hereafter be suffered, on the quantities of natural gas which plaintiff could have sold and could hereafter sell throughout the term of the agreement of July 21, 1942 if such quantities should be available, would constitute the major part of plaintiff’s damages; that plaintiff has at all times performed, is now performing, is ready, willing and able to continue to perform its part of the agreement of July 21,1942.

The complainant’s prayer for relief, among other things, asks that defendants or one or more of them be required to specifically perform all of the terms of said agreement of July 21, 1942; that defendant he required to account to plaintiff for losses and damages plaintiff has sustained and will sustain throughout the term of said agreement of July 21, 1942 whether or not said agreement shall be specifically enforced; that the plaintiff have judgment against the defendants for all losses and damages which the plaintiff has heretofore or will hereafter sustain on account of the failures and defaults of the defendants and that the plaintiff have such further and general relief as equity will require.

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Cite This Page — Counsel Stack

Bluebook (online)
71 N.E.2d 199, 330 Ill. App. 343, 1947 Ill. App. LEXIS 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-natural-gas-co-v-sunflower-natural-gasoline-co-illappct-1947.