Ethyl Corp. v. Forcum-Lannom Associate

433 N.E.2d 1214 (1982)

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Nature of the Case

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Facts

Ethyl (D) hired Forcum (P) to build an addition to its Capitol Products plant in Kentland, Indiana. P was to design and build a 45,000-square foot addition for $667,700. The transaction proceeded until the State Fire Marshall wrote to P and told P that his plans and specifications did not comply with all required rules in that the building did not have smoke and heat vents and an annunciator panel. The contract did not detail these items, but it did call for P to build a building that was in conformance with all current and applicable codes, rules, regulations, and standards. D and P argued about who was going to pay for the items necessary to bring the building up to fire code. Eventually, D informed P that it was going to withhold $34,500 to pay for the items and have them installed. P sued D under the mechanic’s lien, and D counterclaimed for the cost of installing the items. P got the verdict and attorney's fees, and D appealed.