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Contractor Recovers For Wrongful Termination Termination-default; Damages; Profit

Saturday, September 03, 2005 04:01 pm

 
Contractor Recovers For Wrongful Termination Termination-default; Damages; Profit

A California court has allowed a wrongfully terminated contractor to recover the contract balance minus the cost of completion, as well as reduced profit caused by increased bonding premiums and borrowing costs.

The City of Lancaster awarded a contract to M. A. Butters & Associates to build trails, bridges and walkways in a nature preserve. The contract gave the City the right to terminate for noncompliance with the terms of the agreement.

The City became frustrated with the pace of Butters' work and refused to grant extensions of time, even for excusable delays. The City also withheld an [...]

 
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