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Maple Farms Case Brief

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Maple Farms, Inc. v. City School District of the City of Elmira, New York

Supreme Court of New York, Special Term, Chemung County, 76 Misc. 2d 1080; 352 N.Y.S.2d 784 (1974)

FACTS Maple Farms, Inc. signed a contract with City School District of the City of Elmira, New York to supply milk at a specified price. The United States Department of Agriculture controls the price of raw milk at the farm. The contract gave responsibility of an increased milk price the responsibility of the milk dealer. The supplier, Maple Farms was aware that the price of raw milk fluctuated but did not include a clause to excuse it. The supplier has entered into similar contracts with the plaintiff for the last ten years.

ISSUE Maple Farms sought to terminate the contract to supply milk at a set price to the school. The grounds for termination were based on legal impossibility and the school district could cancel the contract without violating N.Y. Const. art. VIII. § 1.

DECISION Plaintiff’s motion was denied and defendant was granted summary judgment which dismissed the complaint.

REASON Plaintiff argued impossibility and impracticability due to extreme and unreasonable difficulty, expense, injury or loss involved. Impracticability exists when it can only be done at an excessive and unreasonable cost. [HN3] states “where economic hardship alone is involved performance will not be excused.” [HN5] U.C.C. § 2-615 states “that increased cost alone does not excuse performance unless the rise in cost is due to some unforeseen contingency which alters the essential nature of the performance.” Neither of these has been met. [HN7] gives three steps that must be met. “First a contingency – something unexpected – must have occurred. Second, the risk of the unexpected occurrence must not be allocated either by agreement or by custom. Finally, occurrence of the

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