In May 1998, RDP Royal Palm Hotel, L.P., contracted with Clark Construction Group, Inc., to build the

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In May 1998, RDP Royal Palm Hotel, L.P., contracted with Clark Construction Group, Inc., to build the Royal Palms Crowne Plaza Resort in Miami Beach, Florida. The deadline for “substantial completion” was February 28, 2000, but RDP could ask for changes, and the date would be adjusted accordingly. During construction, Clark faced many setbacks, including a buried seawall, contaminated soil, the unforeseen deterioration of the existing hotel, and RDP’s issue of hundreds of change orders. Clark requested extensions of the deadline, and RDP agreed, but the parties never specified a date. After the original deadline passed, RDP continued to issue change orders, Clark continued to perform, and RDP accepted the work. In March 2002, when the resort was substantially complete, RDP stopped paying Clark. Clark stopped working. RDP hired another contractor to finish the resort, which opened in May.RDP filed a suit in a federal district court against Clark, alleging, among other things, breach of contract for the two-year delay in the resort’s completion. In whose favor should the court rule, and why? Discuss.

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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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