termination

Subscribe to termination via RSS

Ed Kimber Heating & Cooling, Inc. v. Travelers Casualty & Surety Co.
No. 3:03cv2111 (SRU), 2006 U.S. Dist. LEXIS 3323 (D. Conn. Jan. 26, 2006)
Trataros Construction, Inc. (“Trataros”), the general contractor on a school addition and renovation project, subcontracted with Ed Kimber Heating & Cooling, Inc. (“Kimber”) for the performance of HVAC and plumbing work. Travelers Casualty & Surety Co. (“Travelers”) issued payment and performance bonds as the surety for Trataros.

Beckwith Machinery Company v. Asset Recovery Group, Inc.
2005 Pa. Super. 429, 2005 Pa. Super. LEXIS 4276 (Pa. Super. Ct. 2005)
In Beckwith Machinery Company v. Asset Recovery Group, Inc., et al., 2005 Pa. Super. 429 (Pa. Super. Ct. 2005), the Court held that invoices for major repairs in the nature of capital improvements to heavy construction equipment were not covered by the terms of a payment bond. The Court reasoned that the repairs referenced in the invoices at issue could not be classified as ordinary maintenance performed for consumption over the course of the project, but rather were services which a contractor would retain the benefit of on the completion of work to be used by him in a like manner on subsequent projects.

LBL Skysystems (USA), Inc. v. APG-America, Inc.
No. 02-5379, 2005 U.S. Dist. LEXIS 19065 (E.D.Pa. Aug. 31, 2005)
In LBL Skysystems (USA), Inc. v. APG-America, Inc., No. 02-5379, 2005 U.S. Dist. LEXIS 19065 (E.D.Pa. Aug. 31, 2005), the District Court concluded that a subcontractor was contractually obligated to continue performance, despite its dispute with the contractor over alleged extra work. Further, the Court concluded that the subcontractor was in the wrong, as its course of performance demonstrated that certain steel work was, in fact, within the subcontractor’s original work scope. As a result, the Court concluded that the contractor’s decision to terminate the subcontract was proper.

Ingrassia Constr. Co., Inc. v. Vernon Township Bd. of Educ.
No. A-3954-00T2F, 2001 N.J. Super. LEXIS 411 (N.J. Super. App. Div. Nov. 8, 2001)
Ingrassia Construction Co., Inc. (“Ingrassia”) entered into a contract with the Vernon Township Board of Education (“Board”) pursuant to which Ingrassia agreed to perform renovations of and additions to the Vernon Township High School. Ingrassia’s performance of its work scope was subject to several milestone dates. Despite this obligation, Ingrassia consistently failed to perform in accordance with the project schedule.

Worth Constr. Co. v. I.T.R.I. Masonry Corp.,
2001 U.S. Dist. LEXIS 2144 (S.D.N.Y. Feb. 21, 2001)
Worth Construction entered into a masonry subcontract with ITRI Masonry for a correctional facility in New York. Due to cash flow concerns, ITRI requested and Worth acquiesced to an arrangement where Worth would pay ITRI’s actual payroll costs, but not payroll taxes or benefits, on a weekly basis. These costs would then be deducted from ITRI’s monthly progress payment. Nevertheless, ITRI began to fall behind in its payments to vendors and its workforce. Subsequently Worth began paying ITRI’s payroll and suppliers by joint check. Eventually Worth terminated ITRI for nonperformance on March 13, 1998 and hired all of ITRI’s tradesmen and supervisors to complete the masonry work.

Sinco, Inc. v. Metro-North Commuter Railroad Co.,
99 Civ. 10631 (AKH), 2001 U.S. Dist. Lexis 1986 (S.D.N.Y. March 1, 2001)
The district court considered whether a tender so defective as to undermine the buyer’s confidence in seller’s ability to cure renders the seller’s attempts to cure futile. The court declined to adopt the “shaken faith” or “loss of confidence” doctrine to relieve the buyer of a fall protection system for the safety of its workers from its contractual duty to accept the seller’s attempted cure. Ultimately, however, the court granted summary judgment to the buyer after finding the seller’s attempts to cure were ineffective.