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United States ex rel. Coastal Steel Erectors, Inc. v. Algernon Blair, Inc.

United States Court of Appeals for the Fourth Circuit
479 F.2d 638 (1973)


Facts

Algernon Blair, Inc. (Blair) (defendant) entered into a contract to build a naval hospital. Blair then entered into a contract with Coastal Steel Erectors, Inc. (Coastal) to supply equipment and perform steel erection for the hospital. Coastal began performance, but Blair refused to pay for some of the performance, stating that it was not obligated under the contract. After completion of 28 percent of the contract, Coastal terminated performance. Coastal filed suit under a theory of quantum meruit. The district court held that Blair’s actions constituted breach and that Coastal was justified in terminating performance. However, the district court held that Coastal would have lost money on the contract had it completed performance. The district court, therefore, denied recovery to Coastal. Coastal appealed to the United States Court of Appeals for the Fourth Circuit.

Rule of Law

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Issue

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Holding and Reasoning (Craven, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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