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Contracts Keyed to Templin
Rich & Whillock Inc. v. Ashton Development Inc.
Citation:157 Cal. App. 3d 1154 (1984)
Bob Britton, Inc. (defendant), general contractor for a project by Ashton Development, Inc. (defendant), entered into a contract with Rich & Whillock, Inc. (plaintiff) for the grading and excavation of the project at a price of $112,900. While excavating, the plaintiff found rocks on the site. In a meeting with the defendants, the plaintiff estimated removal of the rocks, which was not covered by the contract, would cost at least $60,000. Defendant Britton agreed to pay for the extra cost. The defendants paid $190,000 in the invoices submitted by the plaintiff, but refused to pay the final $72,286.45 invoice, stating that they had run out of funds. The plaintiff informed the defendants that the plaintiff would be financially ruined if the invoice was not paid. The defendants offered to pay $50,000 as completion of the contract. The plaintiff called it blackmail, but nevertheless signed the agreement releasing the defendants from any further claims. The plaintiff then sued the defendants for breach of contract to recover the remaining $22,286.45.
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