Tacon Mech. Contractors v. Grant Sheet Metal, Inc.
889 S.W.2d 666 | Court of Appeals of Texas | 1994
What This Case Means for Subcontractors
Grant Sheet Metal was a subcontractor hired by Tacon Mechanical to install HVAC ductwork on four projects. Tacon interfered with Grant's work by running pipes through spaces meant for Grant's ducts, withheld payment, and terminated Grant before the projects were complete. The court ruled that Tacon's wrongful interference and termination breached the contract, and Grant won $130,368.50 in actual damages plus $150,000 in exemplary damages, even though Grant hadn't finished the work.
Key Takeaways
- •A contractor cannot use a termination-for-convenience clause to escape liability if the real reason is wrongful interference with your work. Document all interference and obstruction in writing.
- •If a contractor prevents you from performing (by blocking access, running conflicting work, or withholding payment), you may recover full contract damages even if you didn't complete the job.
- •Wrongful withholding of payment combined with interference can trigger exemplary damages. Keep detailed records of all work performed and payment requests.
Wrongful interference with performance constitutes breach excusing injured party's performance.
Frequently Asked Question
Can I get paid for my full contract if the contractor terminates me early due to interference?
Yes, if the contractor wrongfully interferes with your ability to perform or wrongfully terminates you, you can recover your full contract damages even if incomplete. The court will not let a contractor use termination as an escape hatch when they caused the problem. Document all interference and obstruction carefully.
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