breach of contract Archives - Attorney Scott S. Orenstein

A RECENT APPELLATE COURT DECISION PROVIDES SOME VALUABLE INSIGHT INTO MITIGATION OF DAMAGES, PAYMENT BOND CLAIMS, AND ALLEGED UNFAIR TRADE PRACTICES

The Appellate Court has issued an opinion that arises out of a very common situation on a construction project – the late delivery of materials. The decision is insightful with regard to understanding a general contractor’s obligations when such a situation arises. In addition, the decision describes how a single instance of improper conduct can lead to an unfair trade practice. Finally, the decision provides a reminder that, if you go to trial, no specific outcome is guaranteed no matter how straightforward you may believe the law to be.

In United Concrete Products, Inc. v. NJR Construction, LLC, the defendant general contractor, NJR Construction, LLC (“NJR”) had entered into a contract with the Department of Transportation, whereby NJR had agreed to replace a bridge over the Hockanum River (the “Prime Contract”). United Concrete Prods. v. NJR Constr., LLC , 207 Conn. App. 551, 555-58 (2021). The Prime Contract allowed NJR an 8-week window to perform the bridge replacement work during which time the road would be closed to through traffic. Id. The Prime Contract further provided a bonus for the project’s early completion and liquidated damages for the project’s late completion.

IN MOST CASES, A CONTRACTOR THAT DOES NOT COMPLETE ITS WORK IS STILL ENTITLED TO SOME PAYMENT

When is a contractor entitled to payment for incomplete or defective work

The Importance of Determining the Amount to Which You May Be Entitled After the Breach of a Construction Contract

Litigation is expensive. Before pursuing any particular claim, you need to determine if pursuing the claim makes economic sense. Standing on principle sounds good initially but often starts to seem like less of a good idea as the litigation costs mount.

The value of a claim is referred to as the “measure of damages.” In every lawsuit, the plaintiff has to prove that the defendant did something wrong that injured the plaintiff, i.e. establish the defendant’s “liability”; and the plaintiff has to prove the amount of money to which it is entitled to receive as a result of the defendant’s wrongful conduct to a reasonable certainty, i.e. establish the plaintiff’s “damages.”

Proving damages is just as important as proving liability. The failure of a plaintiff to prove its damages will result in the claims against the defendant being dismissed. See e.g. Shoreline Care Ltd. P’Ship v. Jansen & Rogan Consulting Eng’rs, P.C., 2002 Conn. Super. LEXIS 3715, *15, (Conn. Super. Ct. Nov. 15, 2002). In Shoreline Care Ltd. P’Ship, the project was constructed in phases but, because of the procedural history of the case,

Scott Orenstein
01.09.2017
Connecticut Construction Law, Construction Law, Contract Law, Damages
0 Comment

Categories

Recent Posts