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Business litigation filed by condo association against contractor

On Behalf of | Jul 18, 2018 | Business Litigation

Oregon, like all other states, resolves a large volume of breach of contract actions in its court system each year. These disputes cover many different circumstances that arise between business entities or agencies, or between individuals and such entities. One common type of business litigation dispute concerns the alleged breach of contract between parties to a construction contract.

For example, in another state a typical business litigation complaint was filed recently by a condominium association against a general contractor alleging that the contractor took $89,388.50 to purchase materials to repair the exterior walls of buildings in the development. It is alleged that the parties signed a contract for the work to be performed. It is further alleged that although the general contractor ordered the materials, it failed to pay for them, which compelled the condo association to cover the cost.

The complaint alleges that in Dec. 2017, work on the project stopped completely when the city notified the contractor that it needed to submit architectural plans for the project. The three buildings then partially completed failed the city inspection and did not get a continuing work permit. The condo association had to hire another contractor to finish the job, according to the complaint.

The condominium association demands monetary damages from the general contractor for its losses in the project. It claims that the contractor did not do its work in a good and skillful manner and did not obtain architectural plans with engineer certification. The damages are not specified but the association is likely demanding the difference between what it paid in total to complete the job and what it would have paid had the defendant contractor performed as promised. The damages would also consist of any other expenses incurred over and above that amount. Construction contract disputes and business litigation are common in Oregon in both the state and federal courts.