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Youngstown Steel Erecting Co. v. MacDonald Engineering Co.

154 F. Supp. 337 (1957)

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Youngstown Steel Erecting Co. v. MacDonald Engineering Co.

United States District Court for the Northern District of Ohio

154 F. Supp. 337 (1957)

Facts

On July 6, 1955, Youngstown Steel Erecting Company, Inc. (Youngstown) (plaintiff) proposed installing concrete-reinforcement rods on a construction project of novel design, for which MacDonald Engineering Company (MacDonald) (defendant) was the general contractor. Youngstown’s proposal quoted a price for the work and was specific as to how the company could perform the job with common labor. On July 8, 1955, MacDonald sent Youngstown a letter proposing additional terms, although making no mention of Youngstown’s price quote, and requesting Youngstown’s response. On July 10, 1955, Youngstown sent MacDonald a letter accepting the new proposals in MacDonald’s July 8 letter. Youngstown later learned that MacDonald had awarded the subcontract to a third company, which completed the work with its own common laborers. Youngstown filed a diversity suit in federal district court, charging MacDonald with breach of contract. MacDonald’s president testified that (1) he never saw Youngstown’s July 10 letter, (2) MacDonald’s subcontracts typically were preprinted and contained more details than its July 8 letter proposed, and (3) he doubted Youngstown’s ability to work on the project’s novel design at Youngstown’s quoted price.

Rule of Law

Issue

Holding and Reasoning (Weick, J.)

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