Spring 1996

Recent Court Decisions

Sutton v. M.D.C. 38 Mass. App. Ct. 764

The Massachusetts Appeals* Court reversed an award of $346,000 to a contractor for extra work because of the contractor's failure to fully comply with written notice requirements stated in the contract. It did so even though the facts showed the public owner knew the contractor was incurring added expense and seeking additional compensation, and written notice was futile because the owner intended all along to deny the claim.

Mass Employers Ins. Exch. v. Propac-Mass 420 Mass. 39

The Supreme Judicial Court has ruled a breach of contract that includes a breach of the covenant of good faith and fair dealing implied in every contract constitutes a violation of the Massachusetts statute outlawing unfair acts and practices (M.G.L.c.93A, §11). Under that statute the victim of the breach may be awarded multiple damages and attorney's fees. (See Construction Law Comments, Fall 1992 - Unfair or Deceptive Business Practices).

Campione v. Wilson 422 Mass. 185

A contractor that instructs its insurance broker to increase its policy coverage has the right to recover any damages it suffered because the broker failed to carry out that instruction. The contractor had a right to rely on the broker and to assume the broker carried out its instructions.

* This case is under further review by the Supreme Judicial Court, which has the power to reinstate the award.


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