Opinion ID: 570028
Heading Depth: 4
Heading Rank: 1

Heading: Completion Costs

Text: 39 It was error for the district court to award damages based on its estimation of the reasonable cost to complete the job instead of accepting Whiting-Turner's actual costs of completion, which the district court found was $1,741,866. See L.G. Defelice & Sons v. Globe Indem. Co., 189 F.Supp. 455, 459-60 (S.D.N.Y.1960); Restatement (Second) Contracts § 348 comment c; cf. 3 E. Farnsworth, Contracts 233 (1990) (as long as ... the injured buyer covers 'by making in good faith, a 'reasonable purchase or contract to purchase,' the injured party can recover based on actual loss, regardless of the market price) (footnotes omitted). 40 Article 7(a) of the Subcontract provides that, in the event of W & M's breach, Whiting-Turner may make independent arrangements for completion of the job. The amount of completion cost ... incurred as a result of such default shall be charged against any unpaid balance due the Subcontractor ... and, if said total costs, damages or expenses shall exceed the balance due, the Subcontractor agrees to pay the amount of said excess.... This contractual damages provision is consistent with New York law: 41 The proper measure of damages in a case such as this, where the contractor walked off the job after completing only a portion of the work required by his agreement is the difference between the contract price and the cost of completing the work left undone. In practical application, however, the rule of damages is more clearly and appropriately stated to be the difference between the amount remaining due and owing under the original agreement and the actual cost of completing the work required by the contract. 42 Sarnelli v. Curzio, 104 A.D.2d 552, 553, 479 N.Y.S.2d 257, 258 (2d Dept.1984) (citations omitted); accord Manniello v. Dea, 92 A.D.2d 426, 428, 461 N.Y.S.2d 582, 584-85 (3d Dept.1983); Condello v. Stock, 285 A.D. 861, 861, 136 N.Y.S.2d 507, 508 (4th Dept.1955). Accordingly, absent fraud, overreaching, or other evidence of bad faith, Whiting-Turner should be awarded its actual costs to complete the mechanical work, less the $126,000 remaining contract balance and the $10,000 offset for tools.