Utah Supreme Court considers non-contractual liability of contractors for damages resulting from defective work.

Interwest Construction v. A.H. Palmer & Sons,
292 Utah Adv. Rep. 27, 1996 Utah LEXIS 44 (Utah June 14, 1996)

The Supreme Court of Utah held that the intermediate court of appeals erred in holding that a tort action for negligence and strict liability arising out of a breach of contractually defined obligations was precluded. However, the Supreme Court of Utah also held that the tort claims should be dismissed because the claimant failed to prove causation between the alleged defect and the resultant injury. Continue reading “Utah Supreme Court considers non-contractual liability of contractors for damages resulting from defective work.”

Eleventh Circuit reverses grant of summary judgment in favor of contractor on basis of releases executed by subcontractor.

Allgood Electric Co. v. Martin K. Eby Constr. Co.,
85 F.3d 1547, 1996 U.S. App. LEXIS 15252 (11th Cir. June 25, 1996)

Under Georgia law, subcontractor’s release of all claims against property on which project was located did not operate to release claims against contractor, nor was contractor entitled to benefit of release in which contractor was not mentioned by name.

Plaintiff Allgood Electric Company (“Allgood”) was the electrical subcontractor on a prison project for the Georgia Building Authority (“GBA”). Defendant Martin K. Eby Construction Company, Inc. (“Eby”) was the general contractor. Allgood sought to recover increased costs allegedly caused by Eby’s failure to coordinate various aspects of the project. Allgood also claimed entitlement to retainage. Continue reading “Eleventh Circuit reverses grant of summary judgment in favor of contractor on basis of releases executed by subcontractor.”

District Court for District of Columbia declares liquidated damages clause unenforceable.

Kingston Constructors, Inc. v. Washington Metropolitan Area Transit Auhority,
1996 U.S. Dist. LEXIS 8427 (D.D.C. June 6, 1996)

Corps of Engineers Board of Contract Appeals erred in reducing amount of contractual liquidated damages from $1000 to $500 per day; Board should have declared provision unenforceable and awarded actual damages. 

The defendant Washington Metropolitan Area Transit Authority (“WMATA”) contracted with plaintiff Kingston Contractors, Inc. (“Kingston”) to remove and destroy existing electrical transformers in WMATA’s rapid transit rail system, and procure and install replacement transformers. The contract contained a liquidated damages provision which provided for $1000 for each calendar day of delay beyond a specified completion date. Continue reading “District Court for District of Columbia declares liquidated damages clause unenforceable.”