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Case Brief: London Bucket Co. Inc. v. Stewart
Facts
The plaintiff Stewart had entered into an agreement with the defendant London Bucket Company for the installation of a heating furnace in the plaintiff’s Hotel. However, one year into the work, the plaintiff sought legal redress because the work was incomplete and executed in an unworkmanlike manner. The plaintiff sought compensation of $8250 for loss of revenue and damages. Also, the plaintiff asked for specific performance. The court granted their application and upon asking the client what remedy they preferred, the plaintiff elected for specific performance. However, the defendant sought a review of the decision on the basis that specific performance was not a remedy for this type of contract.
Legal Issues
When a contractor fails to complete a project in a competent manner, is specific performance the appropriate remedy?
Legal Principle Applied in the Case
Ordinary common law provides that incase of breach of contract the appropriate remedy would be damages. Therefore, an equitable remedy such as specific performance can only be granted if damages do not suffice.
Holding/Reasoning
The court has no ability to ensure supervision until works at the hotel and done to the expected standard. However, awarding damages that is equivalent to the cost of restoring the works to the level expected by the client is easily enforceable. Therefore, the appellate court ruled that unless the damages would not adequately cover the cost of ensuring the works at the hotel are done as expected then damages would be the most appropriate. Also, the law provides for damages in the event of breach of contract.
Summary of concurrences and dissents
The appellate court dissented the decisions of the lower court and reversed the award of specific performance.
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