Lewis Electric Co. v. Miller
Iowa Supreme Court
791 N.W.2d 691 (Iowa 2010)
Miller (defendant), owner of hardware stores in Sioux City and Le Mars, contracted with Lewis Electric (plaintiff) for electrical work at both locations; after Lewis substantially performed, a dispute arose over the Le Mars work and Miller withheld part of the payment. Lewis sued for the unpaid balance, and Miller countersued, claiming the Le Mars work was defective and seeking repair costs. The district court found Lewis hadn't breached the Le Mars contract and ruled for Lewis on all claims, reducing damages only for work Lewis didn't perform after the dispute arose; the court of appeals reversed on the Le Mars contract and revived Miller's countersuit. Lewis appealed the instructions given on remand.
Whether, when a construction contractor's performance is incomplete but remedial, the contractor is entitled to recover the unpaid contract price minus the cost of completing any unfinished work and remedying any defective work.