Thompson-Starrett Co. v. La Belle Iron Works

The contract sued on is for service and the furnishing of materials and labor on a cost plus basis in the construction of houses. The owner agreed to pay such costs incurred by the contractor in performance of the construction work plus a fee of 6 per cent, .of the cost. The action seeks to recover an unpaid balance of $128,351.75.

The main defense presented to us is that paragraph III of the contract, providing that “it is understood and agreed by and between the parties hereto that the work included in this contract is to be done under the direction and to the satisfaction of the general…