Kent Nowlin Construction, Inc. (Nowlin), was awarded a contract by the state of New Mexico to pave a number of roads. After Nowlin was awarded the contract, it entered into an agreement with Concrete Sales & Equipment Rental Company, Inc. (C& E). C& E was to supply 20,000 tons of paving material to Nowlin. Nowlin began paving the roads, anticipating C& E’s delivery of materials. On the delivery date, however, C& E shipped only 2,099 tons of paving materials. Because Nowlin had a deadline to meet, the company contracted with Gallup Sand and Gravel Company (Gallup) for substitute material. Nowlin sued C& E to recover the difference between the higher price it had to pay Gallup for materials and the contract price C& E had agreed to. C& E claims that it is not responsible for Nowlin’s increased costs. Who wins? Concrete Sales & Equipment Rental Company, Inc. v. Kent Nowlin Construction, Inc., 106 N. M. 539, 746 P. 2d 645, 1987 N. M. Lexis 3808 (Supreme Court of New Mexico)

  • CreatedAugust 12, 2015
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