Mustang Pipeline Case Summary

The case of Mustang pipeline v. Driver pipeline is a breach of contract case. In a breach of contract the result comes from a party who does not accomplish the contractual promise or if the party seems to be unable to perform the contract. Mustang was the first to bring suit against Driver for the failure to complete the work in a timely manner. However Driver counterclaimed for the wrongful termination of the contract. It is clear that time was of the essence for the completion of the pipeline. Driver was to complete a 100 mile portion of a 200 mile pipeline in a 98 day construction schedule. Not only did Driver ask for an extension of the completion date, but only completed 15 miles of pipeline in more than half the alleged schedule. Mustang contracted Sunland Corporation to finish the pipeline and later sued Driver for breach of contract. In response Driver countersued the breach of contract claiming that Mustang had wrongfully ended their contract.
The issues in this case were based on the justification of contract termination and what sum of money if any would compensate either party. According to the case four main questions were presented by the jury at trial. Did Driver fail to comply with the …show more content…
Driver accepted the time limit of the contract; in turn they should abide to the time factor. In the ruling of this case the jury of the first court determined that Driver had not complied with the contract terms, but Mustang did wrongfully end the contract. The jury awarded damages and attorneys’ fees to Driver as it was determined that Driver had not conducted in a material breach. They decided that the material breach was made by Mustang in the termination of the contract. The appeals court confirmed the jury’s verdict. Mustang was granted petition for review. The Supreme Court overturned the awarded sum given to Driver and returned the compensation to Mustang due to Driver not being able to complete the pipeline in