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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. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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