Malo v. Gilman
Indiana Court of Appeals
177 Ind. App. 365, 379 N.E.2d 554 (1978)

- Written by Rich Walter, JD
Facts
Edward Malo (plaintiff), an architect, entered into a written contract with Arnold Gilman (defendant) for the design of Gilman’s construction project. The contract, which Malo drafted, recited Malo’s preliminary estimate that the project would cost` $70,000. The product of Malo’s design work was a project for which the lowest construction bid was $105,000. This figure was so high that Gilman could not secure financing for his project. Gilman refused to pay Malo’s bill. Malo sued for payment, and Gilman counterclaimed to recover the preliminary fee he had paid Malo. The trial court admitted Gilman’s parol evidence that months before signing the written contract, Malo had assured Gilman that the project could be built for no more than $70,000 and that both Gilman and Malo regarded that figure as the project’s maximum cost limit. The trial court denied Malo’s claim and granted Gilman’s counterclaim. Malo appealed to the Indiana Court of Appeals.
Rule of Law
Issue
Holding and Reasoning (Staton, J.)
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