ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Thursday, November 4, 2004

Oops, you thought we had a deal?

Another South Carolina jury—see the Vince Carter story below—has ordered a utility company to pay $48 million to a disappointed bidder for one of its divisions. The utility, SCANA, was looking to sell its propane division back in 1999. Heritage Propane bid $73.5 million, which was apparently the highest bid at the time, but SCANA continued to shop the division around, eventually selling it to a competitor of Heritage for $20 millon more.

SCANA argued that it had a fiduciary duty to its shareholders to maximize the sale price. “If you're selling your house,” said a company spokesman, “and one buyer comes in and offers a better price over other interested parties—and you don’t have a signed contract—you take the better offer. It’s plain and simple. We feel the verdict is unjustified and contrary to accepted business practices.”

In the News | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Oops, you thought we had a deal?:


Post a comment

If you do not complete your comment within 15 minutes, it will be lost. For longer comments, you may want to draft them in Word or another program and then copy them into this comment box.