Southern Painting Company of Tennessee, Inc. (Southern) (defendant) hired E. M. Silver (plaintiff) as a subcontractor. Under the subcontract, Silver was to furnish all labor and materials necessary for two construction projects, and Southern was to pay Silver a lump sum of $10,000 and a percentage of the net profit on certain additional work. Silver completed more than 90 percent of the work required under the subcontract. Silver argued that Southern breached the contract by refusing to allow Silver to complete the remaining work. Southern argued that Silver breached the contract by failing to complete the work. At the time the work stopped, Southern had paid Silver $7,000. Silver sued Southern and the United Pacific Insurance Company (defendant) for breach of contract, seeking a judgment of $72,000 for the reasonable value of work that Silver had performed under a theory of quantum meruit. An experienced plumbing contractor testified to the value of the services that Silver had provided to Southern. The United States District Court for the District of Kansas found that Southern had breached the contract and entered judgment in favor of Silver for $13,000, representing the value of Silver’s services provided, plus interest. Southern appealed.