Gordon H. Ball, Inc. v. State ex rel. State Highway Division

In March, 1973, plaintiff Ball contracted with the Oregon State Highway Division (Division) to widen and resurface parts of Interstate 5. During the term of the contract, the 1973 Arab oil boycott caused sharp increases in the price of petroleum. In special session, the Oregon Legislative Assembly enacted Oregon Laws 1974, chapter 32, which granted authority to state agencies to modify public contracts under certain circumstances to reflect increased costs of petroleum.

Ball filed a claim with the Division for renegotiation under chapter 32. The Oregon Transportation Commission (OTC) denied…