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American Standard v. Schectman: Difference between revisions
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{{Infobox Case Brief | {{Infobox Case Brief | ||
|court=Appellate Division of New York | |court=Appellate Division of New York | ||
|citation=439 N.Y.S.2d 529*80 A.D.2d 318 | |||
|date=May 15, 1981 | |date=May 15, 1981 | ||
|subject=Contracts | |subject=Contracts | ||
|facts=For 26 years, American Standard, Inc. ("Standard") operated a [https://www.metallics.org/pig-iron.html 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) [https://www.globalspec.com/reference/67331/203279/chapter-23-grading-and-earthwork 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. | |||
|rule=(Damages for incomplete performance) = ([https://www.quimbee.com/keyterms/diminution-in-value Diminution in Value]) | |||
Quimbee: "In the context of a construction contract, diminution-in-value damages are measured by the difference between the value of a structure with a defect & the value of the structure absent the breach." | |||
|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 |
Latest revision as of 23:55, July 24, 2023
American Standard v. Schectman | |
Court | Appellate Division of New York |
---|---|
Citation | 439 N.Y.S.2d 529 80 A.D.2d 318 |
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.
Rule
(Damages for incomplete performance) = (Diminution in Value)
Quimbee: "In the context of a construction contract, diminution-in-value damages are measured by the difference between the value of a structure with a defect & the value of the structure absent the breach."