Subcontract Ambiguous Regarding Mechanical Versus Structural Work

Tuesday, January 08, 2019 9:32 am
 
January 2019 - Volume 41 Number 1
 

Ambiguity --- Scope of Work

Trane US Inc. v. Yearout Serv., LLC, 2018 U.S. Dist. Lexis 210153 (December 13, 2018)

A contractor could not convince a court on summary judgment that it acted properly when it withheld payment from a mechanical sub for failure to perform work that may have fallen outside its subcontract’s scope.

GSC Construction, Inc. (GSC) was the general contractor on a U.S. Army Corps of Engineers (Corps) project to renovate a building at Robins Air Force Base in Warner Robins, Georgia. Yearout Service, LLC (Yearout), was the mechanical/plumbing subcontractor on the project.

According to Yearout, GSC failed to pay for completed subcontract work. Yearout pursued claims against both GSC and the contractor’s Miller Act payment bond surety (the defendants) for GSC’s alleged breach of payment obligations under the subcontract. Yearout also alleged that GSC breached the subcontract by issuing design changes but not change orders to compensate Yearout for the added costs.

In response, the defendants jointly moved for summary judgment, arguing that Yearout was the party that materially breached the subcontract and is therefore barred from recovering against either of them for their alleged breach of contract. The court sided with Yearout and denied the defendants’ motion for summary judgment on the sub’s breach of contract claims.

Material br[..]

Subscribe
×

Dear Valued Customers,

We regret to announce that ProEdTech LLC and all its affiliate brands will cease operations on April 1, 2019.

We are no longer able to fulfill online orders. We will fullfill all DVD and book orders already placed.

Customers of canceled webinars and subscription products may request a refund at (800) 223-8720 or service@proedtech.com. You must do so by April 1, 2019.

Thank you for your business and loyalty over the years. We sincerely apologize for any inconvenience caused.


Best regards,
The ProEdTech Team