Court Opinion

ID: 9607006
Source: CourtListenerOpinion
Date Created: 2023-08-22 02:54:45.801047+00
Date Added: 2024-06-11T12:32:15.251631
License: Public Domain

Deen, Judge,
dissenting in part.
I would eliminate everything in Division 1 following *846the end of the first paragraph on page 842 of the majority opinion. The true rule is stated correctly on page 841 and in quoting Corbin on pages 841 and 842.1 would then add merely that anything to the contrary in Herrman v. Conway, 83 Ga. App. 888, 891 (65 SE2d 41), Robertson v. Gore, 115 Ga. App. 537, 538 (154 SE2d 748), and Redman Development Corp. v. West, 127 Ga. App. 265, 266 (193 SE2d 213), is disapproved. There are two basic reasons why I disagree with the remainder of Headnote 1:
1. The key question this court must decide is what is the correct measure of damages when the contract is not broken until after the contractor has gone to expense towards its performance? Judge Arthur Powell clearly answered this question in Campbell & Co. v. Mion Bros., 6 Ga. App. 134 (3) (64 SE 571), ". . . the net loss incurred by him on account of the amount so expended should be added to the difference between the contract price and what it would have cost him to perform the contract.” (Emphasis supplied.) However, the majority opinion overrules in Herrman, supra: "As being the difference in the contract price and the cost to complete the work, plus sums expended by the contractor up to the time of the alleged breach. ” The only misinterpretation in Herrman is in the four words "to complete the work ” instead of using the correct four words of "to perform the contract” the former implies only the cost to complete the work from the time of the breach while the latter clearly includes all the cost to perform the contract from the beginning to end. Other than these four words the remainder of the rule in Herrman followed in Robertson and Redman, supra, is eminently correct and the same as Campbell, supra, and similar to the rule set out in 5 Corbin on Contracts, § 1094, pp. 510-514. I believe it is important to pinpoint the exact misinterpretation in Herrman, supra, rather than a broad overruling without explanation. The error in Herrman permits a double recovery by the contractor which is wrong. With the majority opinion’s indication that "plus sums expended by the contractor up to the time of the breach” is incorrect and should be overruled, to me perpetuates error and is contrary to Campbell and Corbin. Once Herrman is read *847using the correct four words then the observation pointed out in 25 Mer. L. Rev. 97, 108, is no longer valid.
To summarize, the correct formula or measure of damages when the breach of a contract occurs after the contractor has gone to expense towards its performance, is as follows: The contractor is always entitled to his profit, that is, the difference in the total contract price and the total cost of performing it from its inception, plus the net loss of sums expended (sums expended up to the time of the breach). Provided, however, if progress payments have been made by the owner he is entitled to this credit and likewise if it is shown the contractor had bid the contract showing a loss the owner is entitled to this credit.
2. The majority opinion is clear that a contractor is entitled to expenses as to materials used up until the time of the breach, less any salvage value, which net loss is to be added to the profit. However, the majority opinion is silent as to labor and other expenses that the contractor might incur. The correct measure allows for all net expenses up to the time of the breach. Herrman includes the factual situation of labor and materials. Campbell does not limit expenses to materials only. While we are going back to the right measure of damages let us make certain that the contractor is entitled to his profit plus all expenses of every kind up until the time of the breach.