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Laurel Race Course v. Regal Construction Co.

Court of Appeals of Maryland
333 A.2d 319 (1975)


Laurel Race Course, Inc. (Laurel) (defendant) hired Regal Construction Company, Inc. (Regal) (plaintiff) to rebuild Laurel’s horse race track. Among the documents making up the contract was one referred to as general conditions. Under the general conditions, Watkins and Associates, Inc. (Watkins), the engineer for the project, had the authority to reject work and materials that did not conform to the plans, specifications, and contract documents. In addition, Laurel had the authority to withhold partial payments to Regal for defective work. Subsection 24 of the general conditions stated that payment of the balance due to Regal, including any percentage retained during the construction period, was expressly conditioned upon the issuance of a final certificate by the engineer for the project. Watkins recommended that payment be withheld for deficiencies in Regal’s work and did not issue a final certificate. Laurel refused to pay the full contract balance to Regal, alleging defective work on the race track. Regal sued Laurel, seeking approximately $50,000 for the unpaid balance under the written agreement. The trial court entered judgment in favor of Regal for the full unpaid balance under the contract. Laurel appealed.

Rule of Law


Holding and Reasoning (Levine, J.)

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