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Owner Pays Dearly For Wrongful Termination Termination-default; Damages

Monday, October 03, 2005 04:11 pm

Owner Pays Dearly For Wrongful Termination Termination-default; Damages

A California court has upheld an award which almost doubled the outstanding contract balance due a wrongfully terminated contractor.

Calle Perfecto Business Park, LLC awarded three fixed-price contracts to Greisen Construction, Inc. for tenant improvements in three buildings in an office park. When the work was virtually complete, Calle Perfecto terminated the contracts for default and refused to pay the contract balances. The basis for termination was slow performance of the work.

Greisen's president later testified that Calle Perfecto had been responsible for pulling the n [...]

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