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Look To Ucc When You Can't Agree On Project Deadlines

Wednesday, March 04, 2009 05:12 pm

Look To Ucc Gap¬fillers When You Can't Agree On Project Deadlines Reasonable Time¬Breach of Contract Walter Toebe Constr. Co. v. Kard Welding, Inc. United States District Court for the Eastern District of Michigan 2009 U.S Dist.LEXIS 765(January 7, 2009)

When Walter Toebe Construction Company (Toebe) and its subcontractor, Kard Welding, Inc. (Kard)could not agree on a timeline for delivery of steel girders for a bridge construction project, they wasted more than three months arguing.Rather than looking to applicable UCC gap-filler provisions, the two parties bickered until it was too late to complete the project in a reasonable time.Eventually, they resorted to expensive, time¬consuming litigation.

Although the court found Kard in breach of the con¬tract, Toebe's victory was hollow.Since Toebe owed Kard payment for fabrication work that Kard had already com¬pleted, whatever damages Toebe was entitled to for Kard's breach were offset by the money Toebe owed Kard.The court expressed disgust with both parties and chastised them for"engag[ing]in a war of written words"rather than taking pro¬active measures to resolve the dispute quickly.

What we've got here is failure to communicate

In December 2004 the Michigan Department of Transportation (MDOT)solicited bids for the reconstruc¬tion of two bridges: S07 and S09.The advertisement was part of a larger highway reconstruction project, but the bridge projects were designated as separatejobs with their own deadlines.

The bridges were to be reconstructed in two stages to keep traffic flowing.The bid documents set forth the maxi¬mum number of days permitted for each stage of construc¬tion, and indic [...]

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