Hemlock Semiconductor Operations, LLC v. SolarWorld Industries Sachsen GmbH
United States Court of Appeals for the Sixth Circuit
867 F.3d 692 (6th Cir. 2017)
Relevant factsFree
Hemlock Semiconductor (plaintiff) agreed to supply SolarWorld (defendant) polysilicon for 14 years under take-or-pay agreements requiring SolarWorld to buy a minimum amount yearly (or pay for it) with liquidated-damages provisions. Later, market conditions changed dramatically (in part due to Chinese government action affecting polysilicon prices), and SolarWorld asserted frustration of purpose to escape its obligations.
IssueFree
Whether the frustration-of-purpose defense requires that an alleged unforeseeable event substantially frustrate the parties' primary purpose in making the contract.
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