Owner Termination of Contract and Contractor's Recovery for Work Performed Versus Lost Profits

A building owner contracted for work to be performed on their property, and subsequently terminated the contract before completion, leading the contractor to sue for breach and payment for work done, plus damages for lost profit. The lower court partially upheld the contractor's claim, awarding payment for executed work but denying lost profit because the termination, while breaching the contract, was based on the owner's reasonable belief of the contractor's difficulty in meeting deadlines, which amounted to a justified termination under the contract's terms, thus precluding damages for lost profit. The highest court affirmed this decision, reasoning that where a party terminates a contract based on the other party's demonstrable failure to meet agreed-upon timeframes, even if technically a breach, the non-performance itself justifies denying the breaching party recovery for lost profit, although payment for the work actually completed remains due.