Contractual Limitations of Liability Clauses Are Enforced as Written

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Commercial parties are entitled to limit the damages recoverable in the event

of a breach, and contract clauses limiting such damages will be afforded their

plain meaning, and enforced by courts as written. These are two of the

lessons for contractors imparted by Potomac Constructors v. Efco, a 2008

decision by the United States District Court of Maryland. Eric Radz of Ober|Kaler and co-author Jay Bernstein discuss the case.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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