TX STATECourt of Appeals of Texas
1994

Tacon Mech. Contractors v. Grant Sheet Metal, Inc.

889 S.W.2d 666Court of Appeals of Texas • Decided 1994Enforced

HOLDING

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 FINDINGS

Termination for Convenience

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.

Change Order

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.

FULL COURT OPINION