This section contains the nature of the case and procedural background.

Kaiser (P) had a contract with Producer's (D) in which D was required to take and pay for minimum quantities of gas from wells that P had an interest in. When the resale price of gas declined, D did not pay P for the gas taken on the theory that it was purchasing gas from P's co-owners at a reduced price and that the decline in market was a force majeure event. The district court granted summary judgment on the issue of liability in favor of P. The parties stipulated as to the appropriate damages, interest, and attorney fees and D appealed on the issue of liability.

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