{"id":886106,"date":"2015-12-16T12:19:35","date_gmt":"2015-12-16T19:19:35","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=886106"},"modified":"2015-12-16T12:19:35","modified_gmt":"2015-12-16T19:19:35","slug":"cosmetic-defects-found-to-be-basis-for-termination-of-contractor-for-default","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/cosmetic-defects-found-to-be-basis-for-termination-of-contractor-for-default\/","title":{"rendered":"Cosmetic Defects Found To Be Basis For Termination Of Contractor For Default"},"content":{"rendered":"

Matthew J. DeVries | Burr & Forman LLP | December 9, 2015<\/p>\n

In the construction world, many of us lawyers talk about what is known as a\u00a0material breach<\/em>\u00a0in order to support a termination of the contract. \u00a0In other words, the event that supports the claim for default or termination or breach of contract must be a material one or one that goes to the heart of the contract matter. \u00a0Sometimes, the question comes down to whether an aesthetic or cosmetic defect constitutes a proper ground for termination.<\/em><\/p>\n

Cosmetic damages.\u00a0<\/strong>In the recent case of\u00a0Brenner v. Zaleski<\/em>, the court upheld the owners\u2019 decision to terminate the contractor for default where there was numerous cosmetic defects. \u00a0The case involved the construction of a new wooden loft in an condominium. \u00a0During performance, the owners informed the contractor that they were concerned about certain cosmetic flaws in the work. \u00a0The contractor became very aggressive during one of the conversations with the owner, who ultimately decided to terminate the contractor for default.<\/p>\n

Trial court.<\/strong>\u00a0 After the termination, the owners hired an engineer who found a structural flaw in the contractor\u2019s work. \u00a0The owners sued the contractor for breach of contract<\/a>. \u00a0The trial court held that the contractor was terminated prematurely, finding that the primary reason the owners terminated the contract was because of the aggressive tone of the contractor during their conversations. The court also held that the contractor was not given an opportunity to cure or repair the defects.<\/p>\n

Appellate court.<\/strong>\u00a0 The owners ultimately prevailed on appeal, where the appellate court ruled that\u00a0\u201c[t]here is no obligation on the part of the owner to allow a contractor, who has breached his undertaking by the performance of an unskilled and unsuitable job, additional time or opportunity to rectify his work.\u201d \u00a0The appellate court also found that although the owners did not appreciate the contractor\u2019s aggressive behavior,\u00a0this did not preclude the quality of the contractor\u2019s work from being an additional reason for his termination.<\/p>\n

So what?<\/strong>\u00a0\u00a0There are so many\u00a0construction law<\/em>\u00a0issues in this case that can provide guidance to contractors\u2014whether working on a new residential home, a large commercial development, or a significant transportation project. \u00a0Here are a few:<\/p>\n

    \n
  1. The contract always matters.<\/strong>\u00a0\u00a0In any dispute, the court or arbitrator will look to the parties\u2019 contract to determine the obligations, rights and damages available to the parties. \u00a0In the case of a termination, the contract expressly addresses the circumstances when the contract can be terminated for the convenience of the owner or for the default of the contractor.<\/li>\n
  2. Material breach always matters. \u00a0<\/strong>The \u201cmateriality\u201d of the breach is important for so many reasons. First, generally you must prove a material breach in order to recover damages. \u00a0Next, the court or arbitrator will often look to which party committed the\u00a0first material breach<\/em>\u00a0in deciding whether to enforce various provisions of the contract. \u00a0Finally, as a contractor, you will have only a limited number of circumstances to terminate a contract with an owner (i.e.,\u00a0<\/em>non-payment, interference or owner-related delays, non-delivery of owner-provided materials), all of which mush be material to your performance.<\/li>\n
  3. Cosmetic defects sometimes matter.<\/strong>\u00a0\u00a0While probably not the traditional rule, the decision in\u00a0Brenner<\/em>\u00a0demonstrates that cosmetic defects<\/a> can support a claim for termination for default…<\/li>\n<\/ol>\n

    To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Matthew J. DeVries | Burr & Forman LLP | December 9, 2015 In the construction world, many of us lawyers talk about what is known as a\u00a0material breach\u00a0in order to support a termination of the contract. \u00a0In other words, the event that supports the claim for default or termination or breach of contract must be… Continue reading Cosmetic Defects Found To Be Basis For Termination Of Contractor For Default<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4],"tags":[24,8983],"class_list":["post-886106","post","type-post","status-publish","format-standard","hentry","category-construction-defects","tag-construction-defect","tag-cosmetic-defect","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nCosmetic Defects Found To Be Basis For Termination Of Contractor For Default - 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