Contracts Keyed to Calamari
S.J. Groves & Sons Co. v. Warner Co.
The Appellant, S.J. Groves & Sons Co. (the "Appellant"), sub-contracted to perform concrete work on a bridge for the state of Pennsylvania. The Appellant further subcontracted with the Appellee, Warner Co. (the "Appellee"), in March of 1970 to "deliver adequate supplies [of concrete] at scheduled times." Based on three lengthy strikes and failure to meet state specifications, the project was behind deadline. As a result of the delays, the Appellant attempted to secure other sources of concrete, but found no real alternatives. The one other company in the area, Trap Rock, was not certified by the state. The State stopped work on the project on June 21, 1972. After a conference between representatives from the state, the Appellee and the Appellant, to discuss the Appellee's lapses, the state allowed work to continue on June 26, 1972, but the Appellee's performance remained erratic. On July 11, 1972, Trap Rock was certified by the state and would have done the concrete work for the same price as the Appellee, but the Appellant decided to keep the Appellee as its sole cement supplier. The district court found "as of July 12, 1972, Groves had an obligation to utilize Trap Rock as a supplemental supplier . . . in order to mitigate any possible 'delay damages' resulting from Warner's service." As such, "the court did not award Groves all the delay damages it sought, allowing only $12,534 for overtime which had been paid on days when Warner's deliveries were late before, but not after, July 12, 1972." Additionally, "[s]ince the first pour on July 9, 1970 resulted in an unacceptable deck panel due to Warner's defective concrete and inadequate workmanship by Groves, the court allocated the cost of removing and replacing the panel. The total expenditure was $42,357.11 and Groves was awarded $10,589.43." All told, the trial court found in favor of the Appellant, but only awarded the Appellant $35,401.28 and this appeal ensued.
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