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C. & A. Construction Co. v. Benning Construction Co.

Arkansas Supreme Court
509 S.W.2d 302 (Ark. 1974)


C. & A. Construction Co. (CACC) (defendant) and Benning Constriction Co. (Benning) (plaintiff) were subcontractors on a sewer line installation project. Their contract stated the following: “It is further agreed that [Benning] will receive $20,000 for supervision which will be added to the actual cost figure.” Benning’s president was to conduct the supervision of the project. Benning was permitted to present evidence of a verbal agreement to pay its president a salary and living expenses—in addition to the $20,000—while he supervised. The trial court awarded Benning $20,000 for supervision plus $18,600 for salary and living expenses while its president was engaged in such supervision. CACC appealed as to the amount of this supervision award.

Rule of Law


Holding and Reasoning (Holt, J.)

Dissent (Fogleman, J.)

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