Contracts Keyed to Calamari
K & G Construction Co. v. Harris
Plaintiff subcontracted with Defendant to provide excavation work for a housing development. Payment for Defendant’s work was to be made in installments. The contract further provided that Defendant would carry adequate insurance, and would perform the work in a satisfactory manner. One of the excavations caused a wall to collapse. Defendant and his insurer refused to pay for the damage. Plaintiff was otherwise satisfied with Defendant’s work for several months. When Defendant submitted a bill for payment, Plaintiff refused to pay because he had not been compensated for the bulldozer damage. Defendant continued work for another month, after which time it stopped excavation because Defendant had not been paid. Plaintiff was forced to hire another subcontractor to complete the work, and sued Defendant for the bulldozer damage and the increased cost of hiring another subcontractor. The Defendant counterclaimed for the work not paid for, and for lost profits. The trial court found in favor of the Defendant in the contract suit, and Plaintiff appealed. The Court of Appeals of Maryland reversed.
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