CH Leavell and Co. v. Grafe and Associates, Inc.

McQUADE, Justice.

In the spring of 1961 Hercules Powder Company invited general contractors to bid for the construction of an Air Force “Minuteman” missile installation at Magna, Utah. C. H. Leavell & Company and Morrison-Knudsen Company, Inc., plaintiffs-appellants herein, entered into a joint venture agreement for the purpose of obtaining the prime contract.

If appellants were awarded the prime contract, they intended to subcontract various sections of the plans and specifications to other contractors who specialized in particular phases of the construction industry. One of the major portions…