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Contracts Keyed to Fuller
S.J. Groves & Sons Co. v. Warner Co.
Citation:
576 F.2d 524 (3rd Cir.1978)Facts
S.J. Groves & Sons Company was awarded a subcontract for placing concrete decks and parapets on the Girard Point Bridge in Philadelphia. Groves contracted with Warner Company to supply approximately 35,000 cubic yards of ready-mixed concrete at a rate of 40 cubic yards per hour at times specified by Groves. Warner’s performance was consistently poor, with frequent failures to make deliveries according to Groves’ instructions. This caused deck pours scheduled for mornings to extend into afternoons and evenings, creating overtime labor expenses. Groves considered securing other concrete sources as early as 1971 but found no viable alternatives at that time. In June 1972, the Pennsylvania Department of Transportation halted construction due to Warner’s poor service quality. After a meeting, Warner promised improved performance, and work resumed. By July 1972, Trap Rock Company, another supplier, had received state certification and agreed to match Warner’s price. Despite this, Groves continued using Warner as its sole supplier. The district court found Warner acted in bad faith but limited Groves’ recovery of delay damages to those incurred before July 12, 1972, ruling that Groves had a duty to mitigate damages by engaging Trap Rock as a supplemental supplier after that date.
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