Representing the mechanical subcontractor, MMK sued the material supplier of the pump package based on theories of detrimental reliance and negligence. The supplier participated in the design of the project after submitting their original quote and over 90 days later when the design was being finalized and the purchase order was placed, the pump package price increased by a $1,000,000 with no significant change in scope. With knowledge of a substantial error in the original quote, the supplier concealed the error from the mechanical subcontractor, and continued to participate in the design and procurement process. By the time the error was disclosed, the mechanical contractor had already entered into a contract with the general contractor relying on the original price, exposing it to a substantial loss to replace the pump package components from other sources.
The matter was tried before the Honorable Judge Piper Griffin in Civil District Court for the Orleans Parish.← News