In May 1996, OBrien-Shiepe Funeral Home, Inc., in Hempstead, New York, hired Teramo & Co. to build

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In May 1996, O’Brien-Shiepe Funeral Home, Inc., in Hempstead, New York, hired Teramo & Co. to build an addition to O’Brien’s funeral home. The parties’ contract did not specify a date for the completion of the work. The city of Hempstead issued a building permit for the project on June 14, and Teramo began work about two weeks later. There was some delay in construction because O’Brien asked that no construction be done during funeral services, but by the end of March 1997, the work was substantially complete. The city of Hempstead issued a “Certificate of Completion” on April 15. During the construction, O’Brien made periodic payments to Teramo, but there was a balance due of $17,950, which O’Brien did not pay. To recover this amount, Teramo filed a suit in a New York state court against O’Brien. O’Brien filed a counterclaim to recover lost profits for business allegedly lost due to the time Teramo took to build the addition and for $6,180 spent to correct problems caused by poor craftsmanship. Which, if any, party is entitled to an award in this case? Explain.

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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