Litigation

Follow the Procedures You Write in Your Contract

By H. William Allen et al.

The Arkansas Court of Appeals affirmed the trial court's decision in Glenn Mechanical, Inc. v. South Arkansas Regional Health Center, Inc., No. 06-1473 (3/5/08).

Glenn obtained a contract to perform dirt work at SARHC. Glenn insisted on writing the contract, which provided that any work changes could only be performed with a written amendment. Soon after they began work, SARHC asked Glenn to undercut the parking lot. They did so without a written amendment, and SARHC refused to pay them for the extra work. The trial court held the contract applied to the undercutting and entered judgment for SARHC.

The court of appeals affirmed, holding that Glenn is bound by the contract it wrote. Glenn assumed the risk by performing additional work without a written agreement when it was required by the contract.

Full post as published by Arkansas Business Litigation Blog on March 08, 2008 (boomark / email).