Can't sue an honest evaluator if you get fired based on their reviews of your work. Court protects hired assessors
PARTIES
- Homeowners – Shapiro
- Architect – Mayer scope included reviewing GC invoices and contract administration.
- GC – Cutting Edge
FACTS
Architect reviewing the requisitions regularly told owners that the GC was overbilling. Homeowners terminated GC contract prior to project completion and hired another GC recommended by the Architect.
GC sued the Architect for “intentional interference” with advantageous contractual relations. In order to recover under this theory, the GC needed to show the Architect acted with “improper motive or means”.
The Architect asked the Court to throw out the case saying it was hired to review the GC invoices and even if there were mistakes in its review – there was no improper motive or means.
The trial judge dismissed the case and the GC appealed.
ISSUE
What kind of proof is needed to win on the theory that the party sued - intended to interfere with the contract of another?
HOLDING
Performing the intended scope to review invoices, cannot make out intentional interference without some showing of dishonesty or deceit. Dismissal upheld.
REASONS
Case name Cutting Edge Homes, Inc. v Mayer (Mass Appeals Court 2024) The initial contract price was $2.1 M for a five month major home renovation job. The homeowners terminated the GC 15 months into the work after changes had increased the price substantially. The GC was to give a monthly report of budgeted vs actual cost. The architect told the owner the GC was making stuff up in every invoice.
The Architect’s advice to the owners did lead them the terminate the GC but the Architect’s actions were not improper. Truthful information and honest advice within the scope of an engagement is not actionable. The architect would be protected from suit by the GC even if the architect’s advice was careless or negligent so long as it was not dishonest.
COMMENT
Honest opinions by advisors about the quality of others’ work should not lead to suits.