Question
based off of this example what legal situations you see involved. is their any resolution legally you see? On July 8, 2019, Angel Tool and
based off of this example what legal situations you see involved. is their any resolution legally you see?
On July 8, 2019, Angel Tool and Equipment Manufacturing, Inc entered into a contract with Cut Above Construction, LLC. to manufacture a specialized crane at a cost of $100,000.00 to Cut Above.The crane was to have special hydraulics that will assist Cut Above with work to be performed on a construction project in Pensacola.
The project concerns adding a wing onto a hospital, in particular, Tallahasse Community Hospital.
Pursuant to the contract terms Cut Above paid a $50,000.00 deposit to Angel and the crane was to be completed and delivered to Cut Above's construction site by January 15, 2020. January 15, 2020, came and went and the crane did not arrive.The failure of the crane to arrive set the project back initially by one week.
Following a conversation with Angel's executive Cut Above's understanding from the executive was that the crane would not be completed until January 31, 2020, at which time it was to be shipped via truck FOB the construction site.
There is a provision in Cut Above's contract with its client, Pensacola Memorial Hospital, that the project is to be completed by March 30, 2020, and that every day the project is delayed past that time, Cut Above will be assessed $500 per day, said assessment being deducted from the hospital's final payment.
The Hospital charged Cut Above $3,500 for the 7 day delay.
The crane did not actually arrive until Feb. 4, 2020. Based on the foregoing Cut Above rented a crane, at a cost of $5,000, to complete, much of the project as possible until the specialized crane arrived from Angel.
The crane arrived on February 4, 2020, and Cut Above accepted delivery of the crane but withheld from its final payment to Angel the sum of $10,000.
Cut Above is registered to do business and has its primary office in Tallahassee, Florida.
Angel is incorporated with its primary place of business, its manufacturing plant in Des Moines, Iowa.
Angel made demand on Cut Above for payment in full, but, Cut Above refused.Angel now plans to sue Cut Above in Iowa, but, the contract did not contain a provision concerning legal actions.
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