Chrysler Corp. v. Syracuse Suburban Gas Co.

OPINION OF THE COURT

Mahoney, P. J.

Chrysler Corporation operates a plant for the production of manual transmissions and transfer cases in the Town of DeWitt, near Syracuse. Syracuse Suburban Gas Company, Inc. (Suburban) is a gas distribution company servicing the DeWitt plant. Concerned over Chrysler’s growing and well-publicized financial difficulties, Suburban sent Chrysler a letter dated August 8, 1979 demanding a security deposit in the amount of $500,000, the approximate equivalent of Chrysler’s average bill covering a two-month period. This action was taken in spite of Chrysler’s record…