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This section contains the nature of the case and procedural background.

P submitted a bid to Rehders (D), general contractor, to perform site and concrete work necessary to construct an elementary school. P agreed to reduce the site work bid by $100,000. D verbally accepted the bid and work began on the project. D paid P's first invoice, covering work from July 1 to July 31, in full. P continued work through August, and on September 2, Subcontractor tendered an invoice for $126,358.95 covering work performed between August 1 and August 31. On September 8, P ceased all work on the project. Four days later, on September 12, d offered to pay $58,947.95 for the work Subcontractor had performed. P did not accept this payment. On September 14, P submitted an invoice for the work it had performed from August 1 to September 7 in the amount of $122,099.45. D did not pay. P sued D. The district court concluded that the value of the work performed by P between August 1 and September 7 and invoiced on September 14 was $74,964.05. It found that D had 'incurred an extra $ 50,194.45 in additional expenses due to P's failure to complete the concrete work.' It also found that General had mitigated its damages by completing the site work for $7,746.25 less than it would have paid P. The court concluded that D's damages were $ 42,448.20. The district court did not offset the amount owed to P against the damages but instead entered judgment against P for the full amount of the damages. P appealed.

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