City of Salem Ex Rel. Nuequitable Leasing Co. v. Clearwater Construction Co.

This appeal concerns an agreement to provide rock products for a water purification project of the City of Salem. Defendant-third-party plaintiff Clearwater Construction Company (Clearwater) was awarded a contract to construct the project. The plans and specifications called for three different rock products. Two of them, crushed rock and drain rock, were standard inventory items and easy to obtain. The third, a distinctive type of filter sand, had to be specially manufactured to meet the stringent contract specifications.

Before Clearwater was awarded the contract, Paul, of Clearwater, and…