Corinna Whittle | Bryan Cave Leighton Paisner SUMMARY A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of construction contracts, and often include a cap on the overall amount that… Continue reading Can Liquidated Damages Clauses set General Cap?
Tag: Liquidated Damages
Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties
Garret Murai | California Construction Law Blog California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment… Continue reading Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties
Construction Litigation Roundup
Daniel Lund III | Phelps Dunbar Fluid dynamics? A surety completed a handful of publicly-bid projects in Texas and sought recovery of the contract balances from the projects’ private developers. The developers asserted as affirmative defenses clauses within the general contracts which provided for liquidated damages for late completion. If recognized, the LDs would eliminate… Continue reading Construction Litigation Roundup
Careful Contract Drafting Could Mean Recovery of Liquidated Damages and Actual and Consequential Damages
Alexandra C. “Allie” Apple | ConstructLaw Town of New Milford v. Std. Demolition Srvcs., Inc., 212 Conn. App. 30 (2022) The case involved cleanup and environmental remediation of a vacant factory contaminated with polychlorinated biphenyls and asbestos. The town of New Milford (Town) contracted with Standard Demolition Services, Inc. (Contractor) to perform the third phase… Continue reading Careful Contract Drafting Could Mean Recovery of Liquidated Damages and Actual and Consequential Damages
A Liquidated Damages Provision Might Not Liquidate All Potential Damages
Bill Wilson | Construction Law Zone The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over uncertain actual damages after they occur. Generally, to be enforceable, a… Continue reading A Liquidated Damages Provision Might Not Liquidate All Potential Damages