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Contracts Keyed to Fuller
Westside Galvanizing Services, Inc. v. Georgia-Pacific Corp.
Citation:
921 F.2d 735 (8th Cir. 1990/1991)Facts
In 1987, Georgia-Pacific built a chip thickness screening facility in Arkansas. Southeastern contracted to provide fabricated steel for $232,481. Southeastern subcontracted with Westside to galvanize the steel, which Westside shipped directly to the worksite but billed to Southeastern. By September 1987, Southeastern had defaulted on its contracts, owing Westside $28,201.50. Georgia-Pacific had withheld $43,625.60 from Southeastern. When Westside contacted Georgia-Pacific about payment concerns and threatened to stop shipping, Georgia-Pacific assured Westside it would “make sure that Westside got paid.” Based on this promise, Westside shipped a final load of steel worth $1,264.50. To complete the project, Georgia-Pacific purchased additional handrail from another supplier at a cost exceeding what it would have paid Southeastern under their contract. Georgia-Pacific also incurred costs to correct Southeastern’s misfabrications.
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