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Morin Bldg. Prods. Co. v. Baystone Constr., Inc.
United States Court of Appeals, Seventh Circuit
717 F.2d 413 (1983)
General Motors hired Baystone Construction, Inc. (Baystone) (defendant) to build a new addition to its Chevrolet factory in Indiana. Baystone hired Morin Building Products Company (Morin) (plaintiff) to complete the aluminum walls for the addition. Pursuant to the contract, the walls were to be made out of “mill-finish” aluminum; a grade of aluminum characterized by its raw and sometimes uneven appearance. The contract additionally provided that all work was subject to final approval by General Motors’ agent, and that his “decision in matters relating to artistic effect shall be final, if within the terms of the Contract Documents.” Morin successfully completed the walls. However, when viewed from an angle in the sunlight, the walls did not have a uniform appearance. The General Motors agent rejected the walls, and Baystone hired another contractor to replace them. The second walls were accepted, despite still having a slightly uneven appearance when viewed at an angle in the sunlight. Baystone refused to pay Morin for the balance of the contract price ($23,000) and Morin successfully brought suit for the balance. Baystone appealed.
Rule of Law
Holding and Reasoning (Posner, C.J.)
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