Roof Systems sued Gilbane and Johns-Manville after losing a school roofing contract worth a ten-year warranty. Roof Systems claimed JMC promised to issue a warranty if they used a JMC-certified sub-subcontractor, but JMC later refused. The court threw out most claims but allowed the tortious interference claim to proceed to trial because there was a genuine dispute about whether JMC's warranty statements were truthful. The court upheld Gilbane's right to terminate Roof Systems under a termination-for-convenience clause in the subcontract.
Termination-for-convenience clauses are enforceable—Gilbane could fire Roof Systems even without proving breach, so get clear language on what triggers termination rights before signing.
Verbal warranty promises from material suppliers may not hold up in court unless documented in writing—always get warranty commitments in email or signed agreements, not just conversations.