Morin Bldg. Prods. Co. v. Baystone Constr., Inc.
United States Court of Appeals, Seventh Circuit
717 F.2d 413 (1983)
General Motors hired Baystone Construction (Baystone) (defendant) to build a factory addition, and Baystone subcontracted the mill-finish aluminum walls to Morin Building Products (Morin) (plaintiff); the contract gave General Motors' agent final approval authority, including over "artistic effect." Although Morin's walls met specification for the naturally uneven mill-finish look, the GM agent rejected them for lacking uniform appearance in sunlight, and Baystone hired a replacement contractor whose walls — still slightly uneven at an angle — were accepted; Baystone refused to pay Morin the remaining $23,000 balance, Morin sued and won, and Baystone appealed.
Whether a subjective, good faith standard always applies to evaluate the owner's satisfaction under a standard owner's satisfaction clause.