Legal Question in Business Law in California

I have been delivered a product that is unreturnable (propane). This was delivered by a company that I no longer do business with. What are my obligations as far as paying for this delivery? Do I pay at the rate I have agreed to with my new service provider? or am I obligated to pay the rate requested by the company that is not supposed to be delivering to me?


Asked on 1/07/14, 7:06 am

2 Answers from Attorneys

Frank Natoli Natoli-Legal, LLC

The answer will depend. When you say it is unreturnable I am not sure what you mean. Are you saying that they just came and pumped it into your own tanks so now you have no way of returning it? And if so, how do they get access? Can they just come in whenever they want or does someone have to allow them access? I ask because it may very well speak to your obligation. That is, if they needed you or someone to grant them access then the onus was on you to refuse to accept the product.

I think you should flesh this it in more detail with a lawyer in private. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 1/07/14, 7:24 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Frank probably gets his gas from a pipeline. Like you, I get my gas delivered by truck. Right now, the needle is between 10 and 20% and it's darn cold. I'd take any brand!

I'm rather sure that propane can be off-loaded from your tank and returned to the supplier by a special truck and pump, but it's probably way too costly except where a tank has to be emptied because of some emergency. So, as a practical matter, I agree you are stuck with the erroneous delivery.

Now, legally, what are your rights? Propane, or more accurately liquefied petroleum gas, which is mostly propane by contains varying amounts of related gases including propane isomers and butane, is pretty much a "fungible commodity," meaning that what's supplied by X is commercially equivalent to what's supplied by Y. So, unlike getting a Ford when you ordered a Chevrolet, you got what you ordered ....... there may be a small price adjustment based upon BTU content per pound or gallon, so you end up paying for BTUs, not weight or volume, but otherwise it's interchangeable.

So, if you went to court, even though you no longer had a contract with X, the court should rule that you had a contract implied in law and/or a quasi-contract and/or you would be unjustly enriched if you got the propane free. The net result is, I believe, you'd end up paying B's price to A.

However, there may be one additional wrinkle. Why is B's price lower? If it's a different kind of contract, i.e. one based on greater volumes or annual average price rather than spot price, you might not get as much, or any, relief from the court.

My advice is to stay out of court and negotiate a settlement with A.

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Answered on 1/08/14, 9:39 am


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