Jacob & Young v. Kent

230 N.Y. 239, 129 N.E. 889 (N.Y. 1921)

  • Jacob & Young was hired to build a house for Kent.  Kent specified a specific brand of pipe. Jacob & Young built the house, but neglected to use the brand of pipe specified.
    • Kent specified the pipe because his brother was a pipe manufacturer.
    • The pipe met all specifications, it just wasn't the same brand.
  • Kent found out about this a year after moving in and refused to pay the balance of the contract. Jacob & Young sued.
    • Kent's architect refused to certify the house as being complete unless the pipes were replaced.
    • It would have cost an enormous amount of money to replace the pipes since the walls had already been put in.
  • The Trial Court found for Jacob & Young.  Kent appealed.
    • The Trial Court found that there was no quality discrepancy between the brands of pipe, and the use of the other brand was neither fraudulent nor willful.
  • The Appellate Court affirmed.
    • The Appellate Court found that Jacob & Young default was unintentional and trivial, and that they had substantially performed on the contract.
    • Kent was entitled to recover the difference in the value of the house resulting from the use of a different brand of pipe (if any), but other than that, he was required to pay the full amount of the contract.
    • The breach was not a condition of the contract.  Breaches that are not conditions are atoned for by calculating damages, they do not excuse the other party from performance.