December 8, 2003

Pennsylvania Court Allows Exemplary Damages, Nailing Owner for Breach of its Implied Obligation of Good Faith Inspection

John B. Conomos, Inc. v. Sun Company, Inc. (R&M)

An Pennsylvania appeals court nailed a Sun Company refinery project for breach of contract due to bad faith inspection on an industrial painting contract. In addition to liberal contractual damages, the episode cost Sun over $80,000 in punitive damages, interest and attorney fees pursuant to Pennsylvania’s Contractor and Subcontractor Payment Act, enacted to protect contractors from slow-paying owners and subcontractors from slow paying general contractors.

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