Aluminum Company of America v. Essex Group, Inc.
United States District Court for the Western District of Pennsylvania
499 F.Supp. 53 (1980)
ALCOA's (plaintiff) long-term contract to supply Essex (defendant) with aluminum tied pricing to the Wholesale Price Index (WPI), capped at a contractual ceiling, but unanticipated cost increases far outpaced what the WPI formula captured, exposing ALCOA to a loss exceeding $60 million; ALCOA sued for relief under impracticability and frustration of purpose, and the parties stipulated at trial to a modification using the contract's ceiling price, subject to further adjustment.
Whether a party may seek to excuse its performance under a contract, or seek reformation of the contract's terms, when performance under the original terms would be impracticable.