K. Lee Builders v. Thomas Scott Barnes

Henderson, North Carolina, civil litigation lawyers represented the parties in a beach of contract action.

Reported by Kent Morlan

Defendant entered a construction contract with plaintiff, a licensed general contractor. The contract was executed and signed by the parties on or around 1 August 2022, and it set out the parties' responsibilities in connection with the construction of a home on defendant's real property in Henderson. Plaintiff was obligated to supervise construction, furnish all necessary labor and materials, pay taxes and procure licenses and permits, comply with construction laws and regulations, complete clean-up, and take all reasonable safety precautions. The contract contained a warranty of fitness as to all equipment and materials used, a warranty of workmanlike performance, and a one-year warranty from the date of a certificate of occupancy. The contract permitted plaintiff to terminate the contract in the event defendant failed to make a required payment, while permitting defendant to terminate the contract in the event plaintiff failed to perform its duties under the agreement and then failed to cure its default within thirty days, but required defendant to pay for all work performed to date, minus any unpaid portion of plaintiff's builder's fee.

Following trial, the jury found that defendant breached the construction contract by non-performance, entitling plaintiff to recover $53,410.76. The jury found that plaintiff did not breach the contract by non-performance or cause defendant to suffer damages by plaintiff s actions, and that defendant was not entitled to recover any amount from plaintiff. The court entered judgment in accordance with the verdict on 21 March 2025, retaining jurisdiction to hear motions as to attorney's fees and cost.

Reversed in part, affirmed in part and remanded.