Contracts and Contractual Relationships
November 25, 2011Buffalo Marine v. United States, an arcane Chevron case about cleanup expenses for an oil spill, reminds in discussion of a specific statutory defense under the Oil Pollution Act that: “While some contractual relationships are themselves contracts, other contractual relationships merely relate to contracts. The fact that no contract exists between two parties does not preclude the parties from having a ‘contractual’ relationship.” Op. at 7-8. This reminder may provide useful insight in litigation about insurance coverage and contract interpretation cases that involve the term “contractual relationship.”