Reid v. Seei

9 Am. Samoa 3d 50
CourtHigh Court of American Samoa
DecidedJuly 22, 2004
DocketCA No. 42-03
StatusPublished

This text of 9 Am. Samoa 3d 50 (Reid v. Seei) is published on Counsel Stack Legal Research, covering High Court of American Samoa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reid v. Seei, 9 Am. Samoa 3d 50 (amsamoa 2004).

Opinion

OPINION AND ORDER

In the spring of 2002, Plaintiff Olivia Reid (“Reid”) and Defendant Diversified Company (“Diversified”) entered into a construction contract (Ex. 1) for the purpose of building a house. Defendant Pale Seei is the sole proprietor of Diversified, while Defendant Christopher Seei (“Seei”) holds himself out as vice president of Diversified. Displeased with Diversified’s performance, Reid terminated the contract on June 10, 2003.

On July 1, 2003, Reid brought this complaint against defendants for breach of contract and conversion. Defendants answered and filed a counterclaim for conversion on July 28, 2003.

Background

Reid and Diversified signed the contract at issue on March 13, 2002. Therein, Diversified promised to provide labor for the construction of a residence in 36 weeks and that “all utilities used during construction will be our [Diversified’s] expense.” In return, Reid promised to pay Diversified $83,442.60. Because Diversified only had a duty under the contract to provide services, implicitly Reid was made responsible for purchasing and securing construction materials. Diversified only promised to “provide services of closely assisting you [Reid] with procurement of materials.” Reid and Diversified apparently contemplated design changes, agreeing that “any additional work desired and/or required will be discussed and agreed upon before proceeding.” [53]*53They understood that delays might occur, agreeing that “time of completion will be 36 weeks; holidays and unexpected delays due to weather, emergencies, and shipping are not included.”

Reid and Diversified fleshed out their mutual obligations with an “Addendum to Builder’s Agreement March 13, 2002.” Paragraph IV of the addendum reads:

IV. The Builder warrants to the Owner that all work will be of good quality, free from improper workmanship and defective materials and in conformance with the drawings and specifications. The Builder agrees to correct all work performed by the Builder under this agreement which proves to be defective in material and workmanship within a period of one (1) year.

Diversified started construction on or about March 20, 2002. During construction, Diversified and Reid agreed to numerous changes to the house increasing the contract price to $104,732.87. (See Ex. 12.) Changes included extending the family room two feet, adding two feet to one end of the house, adding an attic, and installing a tile roof.

Construction proceeded without significant difficulties, until September 2002, when Reid perceived defects with Diversified’s work. She retained the services of Curtis Braniff (“Braniff’) to inspect Diversified’s work and assure quality. Following Braniff s advice, Reid insisted that Diversified install additional hurricane fasteners to secure the roof to the house, install purlin cleats to fasten down interior parts of the roof, install blocking to support ceiling dry wall, and reinforce ceiling joists to strengthen the ceiling. (See Ex. 5; Ex. 6.) Diversified completed the requested work. Reid also requested that Diversified install additional nail fasteners to secure roofing tile against hurricane winds. (See Ex. 6 (Reid inquiring into additional roof installation procedures).) The manufacturer suggested the use of additional nail fasteners.

During construction, Diversified removed Reid’s formwork from her jobsite after using the formwork to set concrete for the house. On October 4, 2002, Reid made note of the missing formwork and threatened to deduct from a future payment to Diversified. (Ex. 5.)

Diversified continued working on the project approximately six months past the initial estimated completion date. Diversified’s work was slowed by changes agreed to and corrections identified by Braniff. Reid continued to make payments to Diversified until June 6,2003. (Ex. 11.) [54]*54On May 31, 2003, Reid threatened that she would terminate the contract unless Diversified performed to her satisfaction in the next week. (Ex. 8.) Reid terminated the contract on June 10, 2003. (Ex. 9.) Reid ordered Diversified to cease work and to vacate the premises without their tools. At the time, additional nails had not been installed to secure the roof tile against hurricane winds and the roof did not fully cover the house. Diversified requested an opportunity to finish the roof. Reid refused the request.

At termination, Diversified lacked the materials to complete the house. Diversified was waiting for roof tiles, molding, and glass windows. Reid returned most of Diversified’s tools approximately nine weeks after contract termination.

Reid then had other builders complete the house. Pemerika Gillet (“Gillet”), Reid’s husband, supervised the work, including completion of the roof.

Problems between the parties continued after contract termination. Reid discovered defects in the house. Plumbing and exterior plaster developed problems. When Hurricane Heta struck in January 2004, roof tiles blew off of the house and broke. Diversified retained funds that Reid gave it for the purchase of corian countertops that never arrived in American Samoa. In August of 2003, Diversified returned the funds after demand. Reid also had to pay an ASPA power bill for utilities used during construction.

Discussion

I. Termination because of Diversified’s Breach

Reid believes that she had proper justification for terminating the contract with Diversified. Finding each of her reasons inadequate, we conclude that she improperly terminated the contract.

Any non-performance of a contractual duty constitutes a breach of contract. Restatement (Second) of Contracts § 235 (1979). When another party materially breaches, the injured party may terminate the contract and sue for damages. S & R Corp. v. Jiffy Lube Int’l, Inc., 968 F.2d 371, 376 (3rd Cir. 1992). However, some contractual breaches are partial, in which case the injured party retains its duties to perform under the contract. Id.; Restatement (Second) of Contracts § 243 cmt. a; Richard A. Lord, Williston on Contracts § 39:30 (4th ed. 2000). An injured party cannot terminate after a partial breach, because the law seeks “to prevent or deter the break-down of contract relations.” Marvin A. Chirelstein, Concepts and Case Analysis in the Law of Contracts, 118 (2d ed. 1993). A breach is considered partial when the injured party [55]*55accepts the benefits of the other party’s continued performance and continues to perform under the contract. S & R Corp., 968 F.2d at 376; Marley Cooling Tower Co, v. Caldwell Energy & Envtl., 280 F.Supp.2d 651, 657 (W.D. Ky. 2003); Restatement (Second) of Contracts § 243 cmt. a, § 246 cmt. a; Williston on Contracts § 39:30. When the injured party is not discharged from her contractual duties, the party must continue to perform, but can sue for damages flowing from the breach. S & R Corp., 968 F.2d at 376; Restatement of Contracts (Second) § 243 cmt. a. In addition, if a deficient performance is cured, the duties of an injured party are not discharged. Id. at § 242 cmt. a. The breaching party’s cure must not unreasonably delay performance. Id.

A. Breach bv Unjustified Delay in Performance

Reid argues that she had justification to terminate the contract because Diversified performed with unjustified delay.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Henggeler v. Jindra
214 N.W.2d 925 (Nebraska Supreme Court, 1974)
Carter v. Sherburne Corporation
315 A.2d 870 (Supreme Court of Vermont, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
9 Am. Samoa 3d 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-seei-amsamoa-2004.