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Contracts Keyed to Marshall
Hope’s Architectural Products v. Lundy’s Construction
Citation:
781 F.Supp. 711 (1991)Facts
On June 13, 1988, defendant Lundy’s entered into a contract with the Shawnee Mission School District as general contractor for the construction of an addition to the Rushton Elementary School. Lundy’s provided a public works bond in connection with the Rushton project. On June 29, 1988, Hope’s contracted with Lundy’s to manufacture ninety-three windows for the Rushton project. The contract price, including the cost of labor and materials for the windows, was $55,000.The windows were shipped from Hopes’ New York plant to Kansas City on October 28. Delivery to the Rushton site was anticipated on November 4. On November 1, Hannah called Hopes’ office in New York to inquire about the windows. He spoke to Kathy Anderson, Hopes’ customer service manager. The substance of this conversation is disputed. Hope’s claims that Hannah threatened a back charge of $11,000 (20% of the contract price) for late delivery of the windows. Hannah informed Odor that there was no way for Lundy’s to get an advance from the school district at that time to comply with Hopes’ request. The meeting ended, Lundy’s did not prepay, and Hope’s did not deliver the windows. In February 15, 1989, Hope’s notified defendant Bank IV of Lundy’s failure to pay the contract price and demanded payment from Bank IV on the public works bond. Bank IV refused to pay Hopes’ claim.
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