The owner moved to set aside the jury’s verdict claiming that liquidated damages of 30% were disproportionate to the contractor’s actual damages, which were at most 20%
Kiefer of Pepper Hamilton LLP Published June 3, 2020 A federal court in Penna. found a liquidated damages provision unenforceable where the per day liquidated damage amount was copied from contracts for prior unrelated projects rather than a project-specific forecast of likely damages
If the party asserting liquidated damages meets this burden, the party opposing liquidated damages (usually the Contractor) can defeat the liquidated damages provision by presenting evidence that there is an “unbridgeable discrepancy” between the actual damages and liquidated damages (i.e., that the actual damages would be significantly less than the liquidated damages)
If part of the project is physically damaged during construction, and if the loss is not excluded, the policy will pay to repair or replace the damaged property...If there is no direct physical loss or damage, there is no coverage, period
Many construction-related contracts, ranging from negotiated EPC contracts to routine purchase orders, include clauses related to limitation of liability (LOL), damage limitation, indemnity, and exculpatory provisions
04-04-2024 | 02:00 PM - 03:00 PM ET
As recently as last year, New York courts enforced the literal terms of broad no-damage-for-delay provisions in construction contracts. As a result, pursuant to New York law, delay damage claims can be dismissed even prior to discovery taking place
Several years after the installation, extensive damage to concrete, steel, and the heating system occurred, and Skanska determined that the cause was MAP’s incorrect installation of some of the expansion joints. Skanska repaired and replaced the damaged property at a cost of about $1.4 million and submitted a claim to MAP’s insurer, co-defendant Amerisure Insurance Company
If the party disputing liquidated damages can prove either that actual damages were not difficult to ascertain or that the liquidated damages were not a reasonable estimate of actual damages and were not reasonably proportionate to the actual damages, the liquidated damages provision will not be enforced
The financial and reputational damage caused by these attacks cannot be underestimated...Often, in order to repair the damage and upload protective software, the entire network must be taken offline
By Bill Wilson of Robinson+Cole Published on August 3, 2022 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 liquidated damages provision must satisfy three criteria: (1) the damages resulting from a breach of contract must be uncertain when the parties enter the contract; (2) the parties must clearly express their intent to liquidate damages in advance; and (3) the amount stipulated for liquidated damages must be reasonable and commensurate with the actual damages it is meant to represent.