Philadelphia Corporation et al., Respondents-Appellants, v. Niagara Mohawk Power Corporation, Appellant-Respondent., 207 A.D.2d 176

Summary

Defendant public utility and plaintiff hydroelectric generating facilities owners had 20 contracts for the supply of electricity, 17 of which estimated capacity and annual production. Defendant sought to clarify the maximum it was bound to purchase and told plaintiffs of its interpretation of what it would pay for plaintiffs' excess electricity. Plaintiffs, taking the position that defendant was obligated to purchase their entire output, brought an action for breach of contract and for a declaratory ruling on the contract terms. Defendant moved to dismiss, and plaintiffs cross-moved for summary judgment. In reply, defendant requested, inter alia, that its motion to dismiss be treated as one for summary judgment. The trial court denied all motions. On defendant's appeal and plaintiffs' cross-appeal, the court held that plaintiffs could not, under the contracts with estimates, increase their output beyond reasonable expectations and that defendant was obligated to purchase quantities not...