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Medina v. Sunstate Realty Inc.

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eBook details

  • Title: Medina v. Sunstate Realty Inc.
  • Author : New Mexico Supreme Court
  • Release Date : January 11, 1995
  • Genre: Law,Books,Professional & Technical,
  • Pages : * pages
  • Size : 61 KB

Description

Alfonso and Arlene Medina, husband and wife, sued Sunstate Realty, Inc., for breach of contract and specific performance, among other claims, in connection with a residential construction contract. Sunstate counterclaimed against the Medinas for breach of contract and to foreclose materialmen's and mechanics' liens that it held on the home it had built for the Medinas. After the trial court entered an interlocutory order finding that the building agreement between the Medinas and Sunstate was a fixed-price contract, it held a bench trial on all claims and awarded specific performance and attorney's fees to the Medinas. The court dismissed Sunstate's counterclaims. Sunstate appeals. Because we find as a matter of law that the building agreement between the Medinas and Sunstate was unambiguously a cost-plus contract with a fixed contractor's fee, we reverse the trial court and remand for a determination of the reasonable construction costs incurred by and to be awarded to Sunstate. Further, because we find that the contract could have been modified by express or implied agreement, we remand for a determination whether the contract actually was modified. Facts and proceedings. In early 1992 the Medinas decided to have a home built on land they had purchased in Las Cruces, New Mexico. They secured bids from various contractors, one of whom was Sunstate. In its proposal Sunstate offered to ""build the home on a cost plus basis of eight one half percent (8.5%)."" The Medinas accepted Sunstate's proposal and the parties entered into a formal contract on September 2, 1992.


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