Petersen v. Hubschman Construction Co., Inc.

Petersen (plaintiff) contracted with builder Hubschman (defendant) for construction and purchase of a new home; when the house was substantially complete, Petersen identified defects Hubschman failed to repair to his satisfaction, and Petersen refused to close or pay the remaining balance. Hubschman invoked a forfeiture clause to claim Petersen's down payment and contributed labor and materials; the trial court ruled for Petersen, finding Hubschman had not substantially performed, and the appellate court affirmed.