Laughlin Recreational Enterprises, Inc. v. Zab Development Co.

OPINION

Laughlin Recreational Enterprises, Inc. (Laughlin) appeals from the district court’s judgment awarding damages on a construction contract, plus interest and attorney’s fees, to respondent Zab Development Co., Inc. (Zab). Zab cross-appeals from the district court’s decision cancelling certain promissory notes executed by Laughlin in Zab’s favor.

THE FACTS

Zab contracted with Laughlin to build a hotel and casino on property owned by Laughlin. The parties signed a standard AIA form contract, specifying that Laughlin would pay Zab’s costs of construction plus $100,000.00 profit and…