Forrest Construction Co. v. Laughlin
This action involves claims arising from the construction of a residence in Williamson County for James and Debbie Laughlin by Forrest Construction Company, LLC. Forrest Construction filed a breach-of-contract action against Mr. Laughlin and a quantum meruit action against Mrs. Laughlin, claiming Mr. Laughlin breached the contract by failing to pay. The Laughlins counterclaimed for negligent construction, gross negligence, negligence per se, breach of contract, unjust enrichment, and violations of the Tennessee Consumer Protection Act. The trial court initially found Mr. Laughlin in material breach, but also awarded damages to the Laughlins for negligent construction. On appeal, the Court found that Forrest Construction was the first to materially breach the contract by failing to provide proper documentation of costs and abandoning the project. The appellate court reversed the trial court's finding that Mr. Laughlin breached the contract and the awards to Forrest Construction. It affirmed that the Laughlins were excused from giving notice to cure defects due to Forrest Construction's material breach. The case was remanded to the trial court to re-evaluate the damages for negligent construction and to address the issue of piercing the corporate veil against Thomas Naive.