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Bailey-Allen Co. v. Kurzet

876 P.2d 421 (1994)

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Bailey-Allen Co. v. Kurzet

Utah Court of Appeals

876 P.2d 421 (1994)

Facts

Stanley Kurzet (defendant) and Bailey-Allen Co. (plaintiff) entered a contract for Bailey-Allen to construct the Kurzets’ home. Three months later, Kurzet terminated the contract because Bailey-Allen had failed to provide proof of insurance and Kurzet was dissatisfied with Bailey-Allen’s supervision of the project. At the time of termination, the house was framed and the roof was partially finished, representing about 10 percent of the contract work. Bailey-Allen sued the Kurzets alleging breach of contract and unjust enrichment. Before the trial court, there was mixed evidence as to whether Bailey-Allen conferred any benefit on the Kurzets. According to Kurzet, the completed construction was not performed by Bailey-Allen. After hearing the evidence presented, the trial court found that Bailey-Allen materially breached the parties’ contract by failing to provide proof of insurance and sufficient supervision over the project and that the Kurzets had not breached the contract. Nevertheless, the trial court allowed Bailey-Allen to recover “in quantum meruit/unjust enrichment, based on the contract.” The court’s award of $15,500 to Bailey-Allen was largely based on calculating 10 percent of the contract price. The Kurzets appealed.

Rule of Law

Issue

Holding and Reasoning (Billings, J.)

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