Grant Borman, who is managing a construction project, leased a crane from Allied
ID: 463382 • Letter: G
Question
Grant Borman, who is managing a construction project, leased a crane from Allied Equipment, Inc., and hired Crosstown Trucking Co. to deliver the crane to the construction site. Crosstown, while the crane was in its possession and without permission from either Borman or Allied Equipment, used the crane for three hours to install a transformer for a utility company, which paid Crosstown for the job. Crosstown then delivered the crane to Borman’s construction site at the agreed upon time of delivery. When Allied Equipment learned of the unauthorized use of the crane by Crosstown, it sued Crosstown for damages, seeking to recover in quasi contract the rental value that Allied Equipment would have been paid for the use of the crane. How will the trial court judge hearing this case analyze the following questions? [4 points available.]
Should a liability under quasi contract be imposed on Crosstown?
If Allied Equipment can recover in quantum meruit for Crosstown’s unauthorized use of the crane, what is the appropriate amount of recovery?
Explanation / Answer
As per my understanding, the term Quasi Contract is a legal agreement created by the courts between parties who did not have initially intention and or consent to create an agreement. Under the given case Crosstown Trucking Co. used the property of Allied Equipment, Inc. without entering into an agreement and earned money. Therefore court should impose liability on Crosstown under quasi contract.
Second part of the question used a latin pharse " Quantum meruit " meaning " what one has earned ". Therefore, whatever amount Crosstown took from the utility company for installing transfomer may be the appropriate amount of recovery. However, in U.S. courts are supposed to determine the reasonable value of services based on state common law.
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