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Mid Am. Constr., L.L.C. v. Univ. of Akron

Ohio Ct. App.September 24, 2019No. 18AP-846Cited 10 times
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Case Details

Judge(s)
Sadler
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
bench trial

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of ContractWrongful Termination

Outcome

The Court of Claims ruled in favor of MAC against the University of Akron, finding that the University wrongfully terminated MAC's construction contract for cause without valid justification and that MAC was entitled to recover unpaid contract amounts and damages for delay.

Excerpt

Court of Claims' determination that the University breached its agreement with appellee was not against the manifest weight of the evidence where the Court of Claims made an express determination that appellee's witnesses were more credible and persuasive than the University's witnesses and the evidence, though conflicting, supported a finding that many of the delays in construction were attributable to the construction manager, project architect, and other prime contractors. The Court of Claims' determination that the University breached the takeover agreement with appellee's Surety was not against the manifest weight of the evidence where the undisputed evidence showed that the University never released any of the remaining contract funds to the Surety to pay for work completed by the Surety's subcontractor. Court of Claims did not err when it awarded damages to appellee for a breach of the takeover agreement where appellee had taken an assignment from the Surety of the Surety's right to the remaining contract funds held by the University. The University failed to demonstrate, with reference to the record, that the award of damages to appellee included compensation for work appellee did not complete. Having correctly determined the University breached both the agreement with appellee and the takeover agreement with the Surety, the Court of Claims did not err by denying contractual and statutory damages to the University as compensation for delays to project completion. Judgment affirmed.

What This Ruling Means

This case involved a dispute between Mid America Construction (MAC) and the University of Akron over a terminated construction contract. MAC was working on a university construction project when delays occurred. The University blamed MAC for the delays and terminated their contract "for cause," meaning they claimed MAC had failed to meet their obligations. MAC argued the termination was wrongful and that the delays weren't their fault. The Ohio Court of Claims ruled in favor of MAC. The court found that the University wrongfully terminated the construction contract without valid justification. After reviewing conflicting evidence, the court determined that MAC's witnesses were more credible than the University's witnesses. The evidence showed that many construction delays were actually caused by the construction manager, project architect, and other contractors—not MAC. The court ordered the University to pay MAC the unpaid amounts from their contract plus damages for the delays. This ruling matters for workers because it shows that employers cannot simply blame employees or contractors for problems that aren't their fault. Courts will examine the actual evidence and credible testimony to determine who was really responsible for workplace issues, protecting workers from unfair treatment and wrongful termination.

This summary was generated to explain the ruling in plain English and is not legal advice.

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