New York Bankruptcy Court Allows Total Cost Method to Calculate Contractor’s Inefficiency Damages Resulting from Restaging of Project

GII Industries, Inc. v. New York Dep’t of Transp.
2011 Bankr. LEXIS 3663 (Bankr. E.D.N.Y. Sept. 30, 2011)

The Bankruptcy Court for the Eastern District of New York considered the appropriate method for calculating a contractor’s inefficiency damages and whether the contractor was entitled to prejudgment interest in connection with a highway reconstruction project. The Court held that the total cost method was the appropriate manner by which to calculate damages and that the contractor was entitled to prejudgment interest running from the date final payment was due.

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U.S. District Court in Massachusetts Declines Summary Judgment Based on Releases Submitted with Pay Requests – Holds Issue of Fact Exists as to Interpretation

Josef Gartner USA LP v. Consigli Construction Co., Inc.
2011 U.S. Dist. LEXIS 62492 (D. Mass. June 10, 2011)

Consigli Construction and J. F. White Contracting, as joint venturers and general contractors, contracted with Josef Gartner USA for the design, fabrication, and installation of a curtain wall at the Cambridge Public Library. This subcontract provided for periodic payments to Gartner, contingent upon Gartner’s submission of evidence to Consigli/JFW that all known indebtedness connected with Gartner’s work had been satisfied. The subcontract also provided that Gartner would be entitled to additional compensation due to delays and out-of-sequence work.

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Tenth Circuit Holds Flow Through of “Full Satisfaction” Clause of Prime Contract Does Not Override Limited Repair Clause of Subcontract

Larry Snyder & Co. v. Miller
648 F.3d 1156 (10th Cir. 2011)

The Tenth Circuit held a repair warranty in a subcontract (the “repair clause”) limited the subcontractor’s repair obligations for failed paving work notwithstanding the flow-through of the prime contract’s “full satisfaction” clause.

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