AMERICAN STRUCTURAL SYSTEMS, INC., APPELLANT,
v.
R.B. GAY CONSTRUCTION COMPANY, INC., APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
American Structural Systems appealed a trial court judgment awarding damages to R.B. Gay Construction for breach of a subcontract involving structural metals work on a church. The appellate court affirmed the breach finding but reversed the damages calculation, holding that damages should be the difference between the contract price and the cost to complete, not the total completion cost.
The court affirmed the trial court's construction of the contract as requiring the metal deck, but reversed the damages award. The correct damages measure is the difference between the contract price and the reasonable cost to complete the work, not the total actual cost of completion.
[1] A trial court's interpretation of a contract is subject to review for error.
[2] The measure of damages for a contractor's failure to complete performance under a construction contract is the difference between the contract price and the reasonable co…
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The measure of damages for cost to complete after breach of a construction contract where the contractor fails to complete performance is the difference between the contract price and the reasonable cost to complete the improvements in accordance with the contract.”
Establishes the correct legal standard for calculating damages in construction contract breach cases
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceIn early 1989, American Structural Systems entered into a subcontract with R.B. Gay Construction to complete structural and miscellaneous metals work …
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Breach Of Construction Contract cases and more on FLexlaw
KAHN, Judge.
In early 1989 R.B. Gay Construction Company (Gay) entered into a subcontract agreement with American Structural Systems (Structural) for the completion of certain work on the construction of a new church for San Jose Catholic Parish. Structural agreed to complete Division 5 “Structural and Miscellaneous Metals.” The subcontract amount was $85,940.00 and included the purchase of steel, but the amount was reduced after the church exercised its option of purchasing the steel itself for tax purposes. Structural performed some work under the contract and was paid $34,200.00. A dispute then arose between Structural and Gay as to whether the subcontract required Structural to supply a metal deck. Gay found Structural in breach of the subcontract because it refused to furnish and install the metal deck. Structural’s position was that it was not required to do so under the contract and was entitled to the balance of the contract price since it had completed the contract.
Structural filed a complaint for damages against Gay for the balance of the contract price, and Gay filed a counterclaim for damages against Structural for breach of contract. After a non-jury trial, the trial court entered a final judgment finding that the evidence supported Gay’s counterclaim against Structural and awarded $47,353.81 in damages to Gay.
On appeal Structural argues that the trial court erred in construing the contract to require the metal deck. We find no error in the trial court’s ruling.
Structural next argues that the trial court erred in determining the amount of damages. We find error in the calculation. The trial court simply awarded damages equal to the total actual cost to Gay to complete the contract.
The measure of damages for cost to complete after breach of a construction contract where the contractor fails to complete performance is the difference between the contract price and the reasonable cost to complete the improvements in accordance with the contract. J.M. Beeson Co. v. Sartori, 553 So. 2d 180, 183 (Fla. 4th DCA 1989); Sea Ledge Properties, Inc. v. Dodge, 283 So. 2d 55 (Fla. 4th DCA), cert. dismissed, 285 So. 2d 618 (Fla.1973). This rule is necessarily true because the contractor (or owner in the case of breach by a general contractor) has already agreed to pay the contract price for the contemplated work. In the present case the trial court mistakenly awarded Gay the entire cost of completion, without regard to Gay’s preexisting legal obligation to pay the contract price, as adjusted by any change orders. Therefore, the correct amount of damages to Gay is the difference between the contract price and $47,353.81, representing Gay’s cost of completion.
We REVERSE the damages award and REMAND for a recalculation of the correct amount pursuant to this opinion.
ALLEN and WOLF, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Mole v. First Fed. Sav. & Loan Ass'n, 674 So. 2d 144 (Fla. 5th DCA 1996)…ite. The proper measure of the Moles’ damages, if any, would have been the reasonable cost to complete any items of construction that were to be completed prior to the 80% draw disbursement. Cf. American Structural Sys. Inc. v. R.B. Gay Constr. Co., 619 So. 2d 366, 367 (Fla. 1st DCA 1993) (“The measure of damages for cost to complete after breach of a construction contract where the contractor failed to complete performance is the difference between the contract price and the reasonable cost to complete the i…
-
Williams v. Compton (9th Cir. Ct. App. Div. 2010)…construction contract cases, where there has been partial performance by the contractor, damages are calculated by deducting the reasonable cost to complete from the contract price. See American Structural Systems, Inc. v. R.B. Gay Const. Co., Inc., 619 So. 2d 366 (Fla. 1st DCA 1993). In the instant case, the contract price was $17,700 and the cost to complete was $12,003, leaving $5,697 due the contractor. Since Mr. Compton paid Mr. Williams $13,700, the amount of restitution should be $8,003. Put another wa…
Authorities Cited
- SEA Ledge Props., Inc. v. Dodge, 283 So. 2d 55 (Fla. 4th DCA 1973)
- J.M. Beeson Co. v. Sartori, 553 So. 2d 180 (Fla. 4th DCA 1989)
- Fla. Cities Water Co. v. Bd. OF Cnty. Comm'rs OF Sarasota Cnty., 285 So. 2d 618 (Fla. 1973)
- Dodge v. SEA Ledge Props., Inc., 285 So. 2d 618 (Fla. 1973)