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Remedies Keyed to Kovacic-Fleischer, 8th
Bailey-Allen Co. v. Kurzet
Citation:
876 P.2d 421 (1994)Facts
In July 1990, Stanley Kurzet and Bailey-Allen Company entered into a construction contract for building the Kurzets’ residence on a cost-plus-fixed-fee basis with a fee of $100,000. The contract, drafted by Kurzet, required Bailey-Allen to carry insurance and provide certificates within ten days, supervise subcontractors, and ensure quality workmanship. Bailey-Allen never provided the insurance certificate and later admitted its policy had expired two years earlier. In October 1990, after approximately 10% of work was completed with the house framed and roof partially finished, Kurzet terminated Bailey-Allen’s services based on the insurance failure and dissatisfaction with project supervision. Bailey-Allen filed suit claiming breach of contract, mechanics’ lien, unjust enrichment, and failure to obtain construction bond. The trial court found Bailey-Allen materially breached the contract through failure to provide insurance and lack of supervision, but awarded $15,500 in quantum meruit damages, offset by $4,359 owed to the Kurzets for faulty construction, resulting in a net judgment of $11,141 plus interest.
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