Iannuccillo v. Material Sand & Stone Corp. - 713 A.2d 1234 (R.I. 1998)

Rule:

A party's performance under a contract is rendered impracticable upon the occurrence of an event or a manifestation of a circumstance the nonoccurrence of which was a basic assumption on which the contract was made. The requisite elements to a finding of frustration or impracticability upon the occurrence of a supervening event are that: (1) the contract is partially executory, (2) a supervening event occurred after the contract was made, (3) the nonoccurrence of the event was a basic assumption on which the contract was made, (4) the occurrence frustrated the parties' principal purpose for the contract, and (5) the frustration was substantial.

Facts:

During the course of the performance of a contract for excavation, a town delayed the excavation and a large rock ledge was discovered. Defendants contended that the contract was rendered impossible or impractical and stopped work. The excavation was completed by a third party. First, the court granted defendants' appeal. The court held that defendants' performance was not rendered impossible but excused defendants' further performance because it was rendered impractical by the discovery of the rock ledge.

Issue:

Did the trial court err in its finding that plaintiff, Louis A. Iannuccillo, was entitled to recompense for that portion of the work performed by the third party?

Answer:

No.

Conclusion:

The court held that the trial court did not err when it found that Iannuccillo was entitled to recompense for that portion of the work performed by the third party. However, the court vacated the damage award and remanded for a redetermination of damages because the trial court did not attempt to make the necessary findings of fact. Second, the court denied Iannuccillo’s appeal and allowed defendants to recover the contract price less the amount needed by Iannuccillo to pay the third party because even though the contract was not substantially performed, the ledge affected the ability of the parties to receive the benefit of their agreement.