Mounteer Enterprises, Inc. v. Homeowners Association for Colony at White Pine Canyon

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A party may implicitly waive an antiwaiver clause in a contract through conduct, but there must be clear intent to waive both the underlying contract provision and the antiwaiver clause. Defendant hired Plaintiff to provide snow removal services. The parties’ contract required Plaintiff to maintain a certain amount of insurance coverage. The contract included an antiwaiver clause stating that Defendant’s failure to notice a deficiency in Plaintiff’s insurance coverage could not be construed as a waiver of the insurance provision. When Defendant discovered that Plaintiff had failed to purchase the required insurance, Defendant terminated the contract. Plaintiff brought this action asserting that Defendant had waived its right to terminate the contract because Defendant effectively waived the insurance requirement by making payments to Plaintiff despite its noncompliance. The jury found Defendant liable for breach of contract. The Supreme Court reversed, holding (1) Plaintiff produced no evidence of waiver beyond Defendant’s failure to insist on performance of the insurance requirements; and (2) Defendant was within its rights to terminate the contract. View "Mounteer Enterprises, Inc. v. Homeowners Association for Colony at White Pine Canyon" on Justia Law