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Modification Doesn't Forge New Contract If It Doesn't Extinguish Prior Promises

Tuesday, July 03, 2012 08:46 am


Contract Modification -- Attorneys' Fees

Evergreen Community Power LLC v. Riggs Distler & Co., Inc., 2012 U.S. Dist. Lexis 66594 (E.D. Pa. May 11, 2012)

A sub will be held to the terms and conditions it consented to at bidding because a subsequent series of purchase order agreements did not discharge that initial contract.

General contractor Evergreen Community Power LLC (Evergreen) hired subcontractor Riggs Distler & Co. (Riggs) to install pipes on a power plant construction project in Reading, Pennsylvania. Payment disputes landed the parties in court. After judgment was entered in favor of Evergreen, Evergreen asserted it was entitled to attorneys' fees, costs, and expenses under the parties' contract. Riggs disagreed, claiming that the parties had executed a new contract that did not require Riggs to pay such expenses.

The general terms and conditions contained in the project's bid package required subs to pay "all reasonable sum of attorneys' fees, and all costs and expenses incurred by [the owner] in the enforcement of any of [Evergreen's] rights or remedies hereunder." Riggs' initial bid offer--as well as a revised offer that stated that [...]

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