Structural Polymer Group, Ltd. v. Zoltek Corp.
United States Court of Appeals for the Eighth Circuit
543 F.3d 987 (2008)
Structural Polymer Group and Structural Polymer Systems (SP) (plaintiffs) manufactured carbon-fiber "prepreg" material and entered a ten-year requirements contract with Zoltek Corporation (defendant) to supply SP's carbon fiber needs, even though SP had no requirements at the time; the contract covered Zoltek's lower-cost, large-tow Panex 33 fiber and let SP buy elsewhere if Zoltek couldn't match a lower price. After Zoltek stopped making Panex 33 in favor of a similar product, Panex 35, SP bought no fiber for two years, then ordered Panex 35 in 2004, and later two more shipments that Zoltek never filled. SP sued for breach, seeking damages calculated under both the Panex 33 and Panex 35 product lines; a jury awarded lost profits reflecting both calculations but declined future lost profits, the district court reduced the resulting duplicative award, and both sides appealed.
Whether a requirements contract will be void for lack of mutuality of obligation if the party had no requirements at the time it was formed.