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American Standard v. Schectman: Difference between revisions
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Schectman cut corners: he left the plant ungraded because grading would have cost him $90,000. | Schectman cut corners: he left the plant ungraded because grading would have cost him $90,000. | ||
|procedural_history=Standard sued Schectman in the Erie Supreme Court for breach of contract. | |procedural_history=Standard sued Schectman in the Erie Supreme Court for breach of contract. Schectman lost. | ||
|issues=Can an injured party recover damages for the cost of completion of a construction contract? | |||
|arguments=Schectman argued that Standard didn't suffer any damages. Schectman offered proof that Standard sold the land for $180,000. | |arguments=Schectman argued that Standard didn't suffer any damages. Schectman offered proof that Standard sold the land for $180,000. | ||
|holding=Yes. A party can recover damages for the cost of completion of a construction contract if the breaching party fails to substantially perform the contract in good faith. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://casetext.com/case/american-std-v-schectman | |link=https://casetext.com/case/american-std-v-schectman | ||
Revision as of 16:49, July 24, 2023
| American Standard v. Schectman | |
| Court | Appellate Division of New York |
|---|---|
| Citation | |
| Date decided | May 15, 1981 |
Facts
For 26 years, American Standard, Inc. ("Standard") operated a pig iron manufacturing plant near Niagara Falls, New York. However, in 1972, Standard closed its plant & hired Mr. Schectman who was a demolition & excavation contractor.
In accordance with the contract, Standard paid Schectman $275,000 to (1) remove equipment, (2) demolish structures, and (3) grade the land.
Schectman cut corners: he left the plant ungraded because grading would have cost him $90,000.Procedural History
Standard sued Schectman in the Erie Supreme Court for breach of contract. Schectman lost.
Issues
Can an injured party recover damages for the cost of completion of a construction contract?
Arguments
Schectman argued that Standard didn't suffer any damages. Schectman offered proof that Standard sold the land for $180,000.
Holding
Yes. A party can recover damages for the cost of completion of a construction contract if the breaching party fails to substantially perform the contract in good faith.
