Integrated, Inc. v. Alec Fergusson Electrical Contractor

Integrated, Inc., general contractor for the construction of a state plant quarantine station at Termo, California, subcontracted the electrical work to Alee Fergusson Electrical Contractor. Following commencement of construction a dispute arose over performance and progress payments. Fergusson gave written notice of rescission and refused to proceed unless Integrated agreed to certain terms and conditions. Thereupon Integrated resubcontracted the uncompleted work and sued Fergusson for damages for breach of contract. Fergusson originally filed a cross-complaint but subsequently dismissed the cross-complaint and filed a cross action against Integrated for breach of contract naming as defendants, in addition to Integrated, the Department of Public Works which held funds under a stop notice filed by Fergusson and Firemans Fund Insurance Company, the surety on Integrated’s labor and material bond. The cases were consolidated and tried by the court. In Integrated’s action judgment was entered awarding it damages against Fergusson in the sum of $7,558.28, and in the cross action judgment was entered that Ferguson take nothing and that the Department of Public Works be authorized to…