May 17, 2014

Holman v. Orville - 330 N.W.2d 693 (1983)

FACTS: Madsen got the subcontractor bid from Holman.  Once Madsen was awarded the contract he elected to have Van Knight do the work.

HISTORY: Trial Court granted summary judgment for Madsen.

ISSUE: Was a contract created?

HOLDING: No

RATIONALE: Bottom line is that there is an equity problem that is unique to the construction industry.  If the subcontractor refused to perform that would subject the general to financial detriment.  On the other hand the subcontractor bids as part of  normal business overhead and doesn't lose if he is not included.

DISPOSITION: Affirmed.