$0.00 – $6.00
Dwight Golann
Four party mediation between a construction company and a fuel supplier over vehicle damage.
SCENARIO:
Waltham Construction Supply Corporation is a regional supplier of sand, cement, and other construction materials that runs a fleet of 150 heavy vehicles, consisting mainly of dump trucks but including cement mixers and light vehicles. Waltham’s vehicles are garaged in six depots. Foster Fuels, Inc., is a family-owned business that supplies diesel fuel, oil, and related products to businesses. For several years, Waltham had bought some of its diesel fuel from Foster. Two years ago, Waltham needed some new antifreeze. It decided to buy the antifreeze from Foster. However, after using the antifreeze in its vehicles, Waltham noticed that the vehicles suffered from corrosion.
The day after the first corrosion appeared, Foster’s sales manager came to the Waltham depot to look at the trucks. He remarked that the Foster antifreeze did not look right: it was blue rather than green, the color of the antifreeze that Foster sold for small engines, not large ones. He apologized for having sent over the “wrong antifreeze” and arranged to have the remaining Foster product picked up and replaced with the “right stuff.” Several days after the first reports of corrosion, Foster’s insurer, Lloyds of London, sent an investigator to look at the engines and take the damaged components away for testing. Four months later, Lloyds’ adjuster informed Waltham that it would not take responsibility for the damage because it was not able to find anything wrong with the Foster antifreeze. After an exchange of letters, Waltham sued Foster. Waltham alleged that Foster had been negligent in supplying Waltham with bad antifreeze. If Waltham won, it would be entitled to damages equal to the repair costs and perhaps the lost value of the vehicles, plus interest at 12 % per year.
TEACHING MATERIALS:
For all parties:
- General Instructions
Role specific:
Confidential Instructions for:
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Foster’s In-house Counsel
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Foster’s Outside Counsel
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Waltham’s Vice-President
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Waltham’s Outside Counsel
Teacher’s Package:
- All of the above
Waltham Construction v. Foster Fuels Attributes
Time Required: | 2 |
---|---|
Agent Present: | Yes |
Teaching Notes: | No |
Neutral Third Party: | Yes |
Scoreable: | No |