Case Study : Robert Chuckrow Construction Company

908 Words Jul 9th, 2016 4 Pages
Summary of Case
Robert Chuckrow Construction Company (Chuckrow) was employed as the general contractor to build a Kinney Shoe Store. Chuckrow employed Ralph Gough to perform the carpentry work on the store. The contract with Gough stipulated that he was to provide all labor, materials, tools, equipment, scaffolding, and other items necessary to complete the carpentry work. Gough’s employees erected 38 trusses at the job site. The next day, 32 of the trusses fell off the building. The reason for the trusses having fallen was unexplained, and evidence showed that it was not due to Chuckrow’s fault or a deficiency in the building plans. Chuckrow told Gough that he would pay him to reerect the trusses and continue work. When the job was complete, Chuckrow paid Gough the original contract price but refused to pay him for the additional cost of reerecting the trusses. Gough sued Chuckrow for this expense. Can Gough recover?
Introduction
This review will address several issues associated with the legal, business, and ethics related with the case. First, it will address the legality of the case by reviewing the difference between a written and oral contract, and the results of recovering fees. Next, this review will analyze the business effect of the case as it relates to the monetary bottom line and Chuckrow’s attempt to protect his profits. Subsequently, it will highlight the unethical behavior of Chuckrow and its potential effects on future subcontractors’ trust in…
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