New Era Homes Corp. v. Forster

New Era Homes Corp. (plaintiff) contracted with Forster (defendant) to renovate Forster's home for a total price of $3,075, payable in scheduled installments: $150 on signing, $1,000 upon delivery of materials and start of work, $1,500 upon completion of rough carpentry and plumbing, and $425 upon final completion. Forster paid the first two installments totaling $1,150, but after New Era completed the rough carpentry and plumbing and demanded the $1,500 installment, Forster refused to pay. New Era sued for the $1,500. At trial, Forster admitted breaching but argued New Era could recover only its actual damages from the breach, not the full scheduled installment. The trial court and the appellate court both awarded New Era the full $1,500, and Forster appealed.