LOWY V. UNITED PACIFIC INSURANCE CORP.
429 P.2d 577 (1967)
NATURE OF THE CASE: This was an appeal from a judgment in a cross complaint for damages.
Lowy (P), owners and subdividers, appealed from a judgment in favor of United (D).
FACTS: P entered into a contract with Wolpin (D), a licensed contractor, for excavation
and grading work. It was on Tracts 26589 and 19517 and for the lump sum price of $73,500.00.
The construction of pavement, curbs and gutters was not included in the list of specific
items for which the sum of $73,500 is to be paid. Exhibit 'B' lists 45 unit prices ranging
from $.04 to $4.50 per unit for use in the computation of the amount to be charged for the
performance of that part of the street improvement work consisting of paving the streets and
installing curbs and gutters. The unit prices are entirely unrelated to excavation and
grading. D posted two different surety bonds, one for the excavation and one for the street
improvements. After 98% of the work was performed a dispute overpayment erupted and D ceased
performance. P sued D and its bonding company for breach of contract. D answered and cross
complained for breach of contract and reasonable services rendered. D was given recovery on
the grading on his cross complaint based on the doctrine of divisibility and substantial
performance. D was not given any recovery on the street improvements. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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