UNITED STATES, FOR USE OF SUSI CONTRACTING CO., INC. V. ZARA CONTRACTING CO.
146 F.2d 606 (1944)
NATURE OF THE CASE: Zara (P) and Susi (D) both cross appealed from an order entering
judgment for Ps for wrongful termination of a subcontract.
FACTS: D entered into a subcontract with Ps. The work involved the excavation of material
and placing, manipulating, rolling, and compacting it as a base and surface course for
landing strips or runways. Ps encountered clay, which made progress of their work extremely
difficult, caused the breakdown of their tools, and, required the performance of work not
called for by the contract. Ps made demands on D. D refused and Ps sued D for breach of
contract. D took over the completion of the contract and took possession of and for some
three months utilized the equipment furnished by Ps at the contract site. P sought recovery
for the reasonable cost and value of the actual work performed, and the fair and reasonable
rental value of the equipment for the period of its retention and use. D filed a
counterclaim that Ps refused to perform and thus were terminated and D was due damages for
this breach. The District Court found for Ps with a net judgment of $19,519.65. Ps appealed
because the rental allowance was too small, and D appealed because of the holding that D was
the one who breached the contract and because of the allowance for increased cost of
excavation.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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