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Rockingham County v. Luten Bridge Co.

Circuit Court of Appeals, Fourth Circuit

35 F.2d 301 (1929)

Facts

On January 7, 1924, the board of commissioners of Rockingham County (the County) (defendant) hired Luten Bridge Co. (Luten) (plaintiff) to construct a bridge. Three commissioners voted to go forward with the bridge project, and two opposed. After the contract was formed, one of the commissioners voting in favor of the bridge project resigned, and was replaced by a new commissioner who opposed the bridge project. On February 21, 1924, the commissioners passed a resolution holding that the bridge contract was not enforceable, and informed Luten that the County would not honor the contract. The County directed Luten to not proceed with building the bridge, and stated that any further work completed by Luten would be done at the company’s own risk and expense. At the time Luten was informed that the County would not proceed, it had performed approximately $1,900 worth of work on the bridge. However, Luten continued construction and finished the bridge project. Luten then brought suit against the County for the contract price. The trial court held for Luten, and the County appealed.

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Holding and Reasoning (Parker, C.J.)

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