A subcontractor named Sherrodd, Inc. bid on a construction project based on a representation by Morrison-Knudsen, the project's contractor, that 25,000 cubic yards of excavation was required. After beginning work, Sherrodd discovered that the actual amount of earthwork required was more than 25,000 cubic yards. Sherrodd signed a contract with COP Construction, the party it was sub-contracted to, under duress because they were threatened to withhold payment if the contract was not signed. Sherrodd sued for fraud, constructive fraud, and breach of the covenant of good faith and fair dealing. The court granted a summary judgment for defendants, citing the parol evidence rule, which prohibits the use of oral or written evidence to contradict the terms of a written contract.
Sherrodd, Inc. v. Morrison-Knudsen Co. (1991)
Montana Supreme Court
249 Mont. 282, 815 P.2d 1135
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