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Judges rule in favor of state in contract dispute

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The Indiana Court of Appeals reversed a trial court judgment against the state in a lawsuit filed by a subcontractor working on an airport project in Gary, holding the lower court erroneously determined the state had breached a contract between it and the subcontractor.

Subcontractor Continental Electric Co. sued the State of Indiana Military Department, State Armory Board of Indiana and Gov. Mitch Daniels for breach of contract and quantum meruit. The Indiana Military Department hired Larson-Danielson Construction Co. as contractor. Continental submitted a bid to Larson for $1,794,660 to “furnish and install the labor, material and equipment necessary for the electrical portion of the above project.”

At dispute is an alternative known as Alternate No. 2 relating to the installation of a generator at the facility and what was included in the bid. Continental contended to Larson that it included all labor and materials associated with the generator in its bid and that the company would need a change order of $207,000 because this was the amount above the cost for the generator quoted to Continental at the time of the bid.

After trying to resolve the dispute with the state to no avail, Continental sued the state actors, claiming it performed all work under the contract and hadn’t been paid all of the money owed. Continental also made a claim for quantum meruit, claiming the government accepted the benefits it provided, despite the opportunity to decline them, and that Continental had not been paid. It also argued it was denied due process because Daniels refused to respond to an appeal by Continental even though the main contract between Larson and the government provided a remedy and appeals process.

The trial court ruled Continental was allowed to recover under its unjust enrichment claim, that the state was in breach of contract by refusing to participate in the administrative appeal, and it awarded Continental nearly $207,000 plus costs.

The Court of Appeals found there was no contract between the state and Continental, so the lower court erroneously ruled the state breached a contract between the two. Any remedy Continental sought had to be against Larson as general contractor.

The judges also found there was no showing the state unjustly retained a benefit without paying for it. Despite what Continental claimed, there was no confusion in the main contract about what was or was not to be included in the agreement regarding the generator.

 

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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