The Center for Behavioral Health rented a building for six years from Priskos. One day a water

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The Center for Behavioral Health rented a building for six years from Priskos. One day a water pipe burst, flooding much of the building. The Center hired Advanced Restoration to do repair work, and the bill was $9,300. Priskos was aware the work was being done but did not participate in the decision to hire Advanced or to authorize the work. The Center's insurer said it was not responsible for paying for such damage to the building. The Center gave the bill to Priskos, who contacted his insurance company. It paid the bill minus a $1,000 deductible. Priskos offered the $8,300 check to Advanced for the work as payment in full. Advanced filed a mechanics' lien for the full amount. Priskos demanded a lien waiver from Advanced in exchange for the $8,300 as payment in full. Advanced sued Priskos and the Center for payment in full. Where would suit be filed? Did the tenant (the Center) have the right to have the work done and then expect the landlord to pay the bill, or is the tenant liable because it called Advanced to do the work? Was the tenant an agent authorized to call Advanced and thereby commit the principal, the landlord, to the contract? What kind of an agent would the Center be for Priskos, if there was an agency relationship?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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