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Duty Of Good Faith Doesn't Apply To 'Completeness' Determination

Thursday, December 02, 2010 01:30 am


Work Acceptance

Younglove Construction, LLC v. PSD Development, LLC, 2010 U.S. Dist. Lexis 92334 (D. Ohio Sept. 3, 2010)

A contractor could not base a claim for breach of good faith and fair dealing on the project owner's dissatisfaction with the completeness of the contractor's work. PSD Development, LLC (PSD) hired Younglove Construction, LLC (Younglove) to design and build an animal feed manufacturing facility. As the project progressed, the parties disagreed about the quality of the work and materials, and PSD withheld partial payment. The contractor eventually sued PSD to recover the balance due as well as additional damages based on PSD's alleged breach of its duty of good faith and fair dealing. Younglove contested that PSD claimed dissatisfaction with Younglove's work and exploited the parties' alleged fiduciary relationship.

The court dismissed Younglove's breach claim after finding that P [...]

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