Rivers v. Deane

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Rivers v. Deane
Court New York Appellate Division
Citation 209 A.D.2d 936
Date decided November 16, 1994

Facts

  • "Rivers" = construction contractor
  • Deane = homeowners seeking an additional building on their property
  • Rivers constructed the requested 3rd floor of the building very poorly
    • the 3rd floor was un-usable

Procedural History

  • Rivers sued Deane for breach of contract.
  • The trial court decided

damages = (home's value had the contract been satisfied) - (home's value at the time of the suit)

  • Rivers won $10,000

Issues

When a building is unusable, is the proper measure of damages as follows

damages = (the structure's value had the contractor satisfied the contract) - (the structure's value as is)

?

Holding

No. The proper measure of damages is the market price for completing or correcting the construction so that it satisfies the contract.

Judgment

Vacated & remanded to determine repair cost of the 3rd floor

Reasons

The construction deficiency was neither trivial nor innocent.

Rule

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