Mammoth Construction Case Summary

The key questions in this action is whether the City of Brock breached the contract to pay the final balance of $5,000,000 to Mammoth Construction Inc. for the construction of 2 bridges for access from the downtown core to the facility, if the City of Brock can insist upon the replacement of the bridge decking and railings when the reduction in value of the spectator facility is insignificant and if the initial offer of Mammoth to complete the work for $50,000 affect the outcome.

The City of Brock had breached the contract to pay the balance of $5,000,000 to Mammoth Construction Inc. This breach would be considered a major breach considering the fact that the whole $5,000,000 was not paid on time when it was due. Mammoth Construction Inc. built a brand new spectator facility in exchange for the payment of $5,000,000 plus the additional incurred penalties of $250,000 as a result of their inability to …show more content…
one option is to qualify for recovery as damage “flow naturally from the breach.” Mammoth required the money to pay their subcontractors on time or else damages will continue to grow. An alternative way for Mammoth to recover damages would to mitigate, however it will be difficult as the building is specifically designed for the City of Brock. Mammoth Construction Inc. is a construction company so they are limited to choices on how to minimize their losses. One way is to receive liquidated damages that both parties agreed on to is be paid in damages by a party to a contract if it should commit a breach or they can move on to another construction project. Another approach Mammoth Construction Inc. can recover their loss is to ask the court for Quantum Meruit. Quantum Meruit will apply in this case as a fair amount a person deserves to be paid for benefit conferred. Mammoth Construction Inc. may ask the court to assess the fair market of the work already done and receive compensation on a quantum meruit