Argentinis v. Goul

592 A.2d 378 (Conn. 1991)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D contracted to build a house for P. P agreed to pay D a total of $344,000: $294,000 in cash as the construction progressed, and $50,000 by a promissory note secured by a purchase money mortgage. On the date of the transfer of title in April 1981, P was unable to move into the house because D had not completed various items of construction. The parties then executed a supplemental agreement and reduced the total contract price by $4000 to $340,000. The parties also 'annulled' the original note and P agreed to execute a substitute note and purchase money mortgage in the amount of $43,000, to be held in escrow along with a $3000 cash payment by Ps pending D's completion of certain specified items of construction. In July 1981, P moved into the house. The escrowed cash and documents were released leaving an unpaid balance of $43,000 under the contract. Some of the items of construction specified in the supplemental agreement, however, remained incomplete. P also discovered numerous defects in the structure and substructure of the house. D refused to make repairs and P then refused to make payments on the mortgage. P sued D alleging that D had not substantially performed the contract and seeking damages for breach of contract. P commenced the second underlying action to foreclose the mortgage alleging that P had defaulted in payment. The referee found that D had breached the contract by failing to render substantial performance. The referee awarded P $73,068.75 in damages measured by the cost of repairing the construction defects. The referee also found in favor of P on D's foreclosure on the ground that D's failure of substantial performance defeated his right to recover the balance of the contract price and hence his right to foreclose the mortgage. D appealed to the Appellate Court, which affirmed. D appealed.