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United States for the Use of Palmer Construction, Inc. v. Cal States Electric, Inc.

United States Court of Appeals for the Ninth Circuit
940 F.2d 1260 (1991)

Facts

Cal State Electric, Inc. (CSE) (plaintiff) was the prime contractor on a project with the U.S. Army Corps of Engineers. CSE hired Palmer Construction, Inc. (Palmer) (defendant) as a subcontractor. The price for Palmer’s work under the subcontract was to be $235,137. Palmer completed some work and then breached. CSA had already paid Palmer $114,758.98 and was required to pay another party $126,673.56 to complete the work that was supposed to be done by Palmer, for a total of $241,432.54. The district court found that CSE had suffered $6,295.54 in damages for the amount it was required to pay in addition to the contract price and was also entitled to prejudgment interest of $1,468.88. The district court also found that the value of work that Palmer had completed was $204,845.26 and awarded Palmer the value of its work, less the amount it had already been paid, less the amount of CSE’s damages and prejudgment interest, for a total of $82,321.86. CSE appealed.

Rule of Law

Issue

Holding and Reasoning (Fernandez, J.)

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