HOPE'S ARCHITECTURAL PRODUCTS V. LUNDY'S CONSTRUCTION
781 F.Supp. 711 (1991)
NATURE OF THE CASE: This was a dispute over a construction contract.
FACTS: Lundy (D) entered into a contract as general contractor for the construction of an
addition to an elementary school. D's performance was guaranteed by a bond with Bank IV.
Hope's (P) is a manufacturer of custom built windows and P contracted with D to manufacture
93 windows for the elementary school. The price was $55,000. The contract included a term
relating to the time of delivery but that was in dispute. Under P's interpretation, the
windows were to be delivered in 12-14 weeks after receipt of the shop drawings (delivery no
later than October 24, 1988). Production of the windows was delayed and D threatened to
withhold liquidated damages if the deadlines were not met. The windows were shipped on
October 28 and delivery was anticipated on November 4. P then received a call from D and P
claims that D threatened a back charge of $11,000 for late delivery of the windows. P
requested assurances from D that no back charge would be assessed. D was unwilling to
provide those assurances. P then suspended delivery by a letter dated November 2 until D
provided assurances there would be no back charge. P then demanded prepayment from D before
the windows would be delivered. D terminated the contract. P notified Bank IV and demanded
payment on the work bond.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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