Goes v. Vogler

Summary

The Nebraska Supreme Court affirmed judgments arising from the construction of the Voglers’ home. The court held that the parties’ agreement was a cost-plus contract, that the Voglers breached the contract by failing to make required draw payments, and that the contractor and subcontractors were entitled to recover unpaid amounts. The court also declined to impose additional fiduciary duties on a contractor under a cost-plus contract absent contractual language or other legal requirements.

Holdings

1. The agreement was a cost-plus contract, not a fixed-price contract.
2. The Voglers committed the first material breach by failing to make the draw payments required by the contract; Shelton did not first breach the agreement.
3. A contractor does not have a fiduciary duty under a cost-plus contract as a matter of law beyond obligations imposed by law and the parties' contract.
4. Goes was entitled to recover the unpaid amount awarded by the district court because the Voglers had not established that they had paid the applicable prime contract price.

Questions Presented

1. Whether the construction agreement was a cost-plus contract or a fixed-price contract.
2. Whether the Voglers or Shelton committed the first material breach of the construction contract.
3. Whether Shelton had a fiduciary or other additional legal duty under the cost-plus contract to provide extensive accounting information or to prevent cost overruns.
4. Whether Goes was entitled to recover under its construction lien and contract claim despite the Voglers' assertion that they had paid the prime contract price.

Disposition

affirmed