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Contracts Keyed to Templin
Morin Building Products Co. v. Baystone Construction
Citation:
717 F.2d 413 (7th Cir. 1983)Facts
General Motors hired Baystone Construction to build an addition to a Chevrolet plant in Muncie, Indiana. Baystone subcontracted with Morin Building Products to supply and erect aluminum walls for the addition. The contract specified “aluminum type 3003, not less than 18 B & S gauge, with a mill finish and stucco embossed surface texture to match finish and texture of existing metal siding.” The contract also included provisions that all work was subject to the final approval of the owner’s agent, particularly regarding “artistic effect,” and that the owner’s decision on “quality or fitness of materials or workmanship” would be final. After Morin installed the walls, GM’s representative rejected them because, when viewed in bright sunlight from an acute angle, the exterior siding did not appear to have a uniform finish. Baystone removed Morin’s siding, hired another subcontractor to replace it, and refused to pay Morin the $23,000 balance of the contract price. There was substantial evidence that GM’s rejection was unreasonable, especially considering that “mill finish” is defined in the trade as having a nonuniform appearance.
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