William H. Gordon Assocs. v. Heritage Fellowship, United Church of ChristAnnotate this Case
Church entered into an engineering contract with Civil Engineer (Engineer) to design site plans for a rain tank system. Church entered into a contract with General Contractor (GC) for the construction of the rain tank. After GC installed the rain tank, the tank collapsed. Engineer designed and GC installed a different storm water management system, but Church refused to pay GC for installing the new storm water system. GC sued Church for payment, and Church counterclaimed against GC for breach of contract. Church filed a third-party claim against Engineer for repair and replacement costs it was found to owe GC because of the rain tank collapse. Church filed a separate suit against Engineer. The circuit court concluded that the rain tank collapse was the failure of Engineer, entered judgment for GC on its claims against Church, and awarded Church damages for delay and other damages associated with removing and replacing the rain tank. Engineer appealed. The Supreme Court (1) affirmed the judgment of the circuit court finding Church’s claims timely and Engineer liable on Church’s breach of contract claims; and (2) reversed the circuit court’s judgment granting Church damages in the form of construction loan interest that was not incurred as a result of the breach of contract. Remanded.