Board of Public Works v. L. Cosby Bernard and Co.

Hammond's Board of Public Works (defendant) hired architect L. Cosby Bernard and Co. (plaintiff) to design a building for a 6.5% commission on an estimated $1.5 million construction cost, and paid Cosby for preliminary drawings under that estimate. The City Engineer later learned federal funds might be available and, with the mayor and other officials, had Cosby redesign a larger, fancier building — nearly doubling Cosby's potential fee — but the City Controller refused to pay beyond the original $1.5 million estimate because the city council had appropriated funds only for that amount. Cosby sued for the full commission on the expanded design, and the parties disputed how much the council and Board actually knew about or authorized the expansion. The trial court granted Cosby summary judgment on a contract theory, and the Board appealed.