Procedural Posture

Plaintiff, an iron works corporation, brought an action for damages against defendants, property owners and others, for breach of contract. Defendants appealed from an adverse judgment by the Superior Court of San Diego County (California).

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Overview

The trial court found generally that the iron works company had agreed to furnish steel framing for a three-story building in accordance with the plans and specifications indicated, and the property owners promised to pay for this. The court found that in compliance therewith, the iron works company commenced upon the performance of the contract and entered into a written subcontract for the supply, engineering, and fabrication of all steel required. Without the iron works company’s consent and against its wishes, the property owners wilfully prevented the iron works company from further performing its contract, which amounted to a material breach. In addition, the iron works company suffered damage for costs and expenses incurred by its subcontractor. The iron works company was awarded damages. The trial court properly rejected the argument that the contract could not be a basis for a cause of action for claimed breach since its effectiveness was conditioned upon the property owners’ determining within a few days whether a two-story or a three-story building was to be erected.

Outcome

The judgment was affirmed.

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