Liquidated Damages

News & Analysis as of

Restaurants, Owners and Managers Ordered to Pay 700K to Employees

A consent judgment was entered in the U.S. District Court for the Eastern District of Wisconsin requiring El Azteca Restaurant Group, including the restaurants, the owners and the managers, to pay 129 current and former...more

Employing Insurance to Protect You From Wage & Hour Suits In Light of Updated Regulations

In 2014, we reported that wage and hour lawsuits—claims in which employees and companies dispute the amount owed to an employee or class of employees for overtime work— had increased 432 percent over the last two decades. ...more

7 Key Risks for Contractors in Transit Procurements

Your company has reviewed an RFP issued by a municipal authority to select a firm to operate and maintain transit services, and the business team has signed off on the economics of submitting a bid. As your company’s counsel,...more

Appellate Court Notes

AC36912 - Whitney v. J.M. Scott Associates, Inc. Plaintiff entered into an employment and stock purchase agreement with the owner of the company, that provided if he were terminated without cause before the end of five...more

Supreme Court of NSW Opens the Door to Challenging Adjudication Determinations on the Basis of an Error of Law

On 15 June 2016, in Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd [2016] NSWSC 770, the Supreme Court of New South Wales (NSW) decided that adjudication determinations made under the Building and Construction...more

Tokyo Dispute Resolution and Crisis Management Newsletter - June 2016

Dispute-Management - Best Practices in Construction Projects - Introduction - What do you do when an unforeseen event threatens to increase the costs or time necessary to complete a major construction project?...more

Getting Comfortable with Lender Comfort Letters

As the global real estate economy continues its recovery from the severe economic recession nearly a decade ago, hotel and hospitality real estate transactions have been robust as of late. According to the "Hotel investment...more

Energy Newsletter - June 2016

Oil and Gas Unitization: Specific Considerations for Cross-Border Unitization - Setting the Scene - There are more than twenty bilateral unitization Treaties and Joint Development Agreements (JDAs) in place today...more

Amending FIDIC Provisions on Delay Liquidated Damages: a Case Note on J Murphy & Sons Ltd v Beckton Energy Ltd [2016] EWHC 607...

The perfect construction project is completed on time, on budget, and in accordance with the Employer’s specification and/or performance requirements. In reality, delays frequently occur and with such delay the potential for...more

Damage Control: Common Errors in Contractually Limiting Damages

We’ve all heard the proverb, “Prepare for the worst, but hope for the best.” Nowhere is that advice more fitting than in drafting a contract. Of course, the main focus of any negotiation will be the terms of the deal itself –...more

Damages 101

Litigation is inherently results-oriented. Too often, however, even those experienced in litigation tend to blur the lines between subtly different categories of damages. Perhaps it’s time to go back to Damages 101....more

Major Changes to Federal Overtime Regulations Take Effect December 1. Are You Prepared?

This week, President Obama and Secretary of Labor Thomas Perez announced the publication of a final rule to take effect December 1 that will overhaul the Fair Labor Standard Act’s overtime regulations. The U.S. Department of...more

Public Owner Recovers Liquidated Damages Even After Terminating Contractor for Convenience

You can’t have your cake and eat it too.  That’s no fun!  Why even get the cake if you are not allowed to eat it?  Recently, a court held that a public owner could have both a termination for convenience, as well as...more

Ohio Supreme Court Holds Reasonableness of Liquidated Damage Provision to Be Determined Based Upon the Parties’ Knowledge at Time...

Boone Coleman Constr., Inc. v. Vill. of Piketon, 2016-Ohio-628, 2016 Ohio LEXIS 441 (Ohio Feb. 24, 2016) - A general contractor entered into a construction contract with a public agency for a road construction project...more

DOL Quietly Moves to ‘All Liquidated Damages, All the Time’ Footing

The Fair Labor Standards Act (“FLSA”) has always provided for liquidated damages for violations, but in the past, the Wage and Hour Division (“WHD”) generally pursued the liquidated damages only when forced to litigate....more

IRS Confirms California “Waiting Time Penalties” Are Not Wages For Federal Income Tax Purposes

A recent IRS information letter confirms that “waiting time penalties” paid under California law are not wages for federal income tax withholding purposes. Section 203 of the California State Labor Code imposes penalties on...more

Consider Liquidated Damages to Deter Employees From Misappropriating Company Information

It is not unusual for employment agreements to mandate that when an employee leaves a company, whether voluntarily or by termination, he or she must return all company information. As the employer in EventMonitor v. Leness...more

Give your dough to the baker even if he will eat half of your bread!

As dispute lawyers we often deal with contracts that result in unintended consequences because they have not been drafted by lawyers expert in the chosen governing law of the contract. While many legal systems share...more

Recent Arizona Case Law and Other Developments Affecting Real Estate Lending

Recent Arizona Case Law - Dobson Bay Club II DD, LLC v. La Sonrisa De Siena, LLC (AZ Court of Appeals 2016). The borrowers signed a $28.6 million note and DOT to CIBC. The note required interest-only payments with a...more

Appellate Court Notes

Appellate Court Advance Release Opinions: AC36726 - Schull v. Schull - Trial court properly refused to hold ex-husband in contempt for not paying 50 percent of child’s surgery per the original decree. The Trial...more

Contractual Liquidated Damages Update 3.0

Several editions ago, we published an article relating to the Boone Coleman v. Village of Piketon case, which struck down a $278,000 liquidated damages award for construction delays because the amount was disproportionately...more

Tenth Circuit raises the stakes in (already) costly wage and hour litigation

Wage and hour cases, particularly collective and class actions, are among the most costly employment lawsuits for employers. When an employer arguably is mistaken in how it pays employees overtime, does not pay for hours...more

Construction Corner: Construction Contract Basics

In a previous Construction Corner Post we discussed the primary elements of a design contract for a school construction project. In this post we will describe the basic elements of a construction contract for a school...more

California Court of Appeals Says, “We Like Eich(leay)!”

Time is money. And nowhere can than be best observed than on a construction project. Project delays can mean lost profits for owners, liquidated damages for general contractors, and increased material, labor, field...more

New York Strengthens Equal Pay Protections

In October of 2015, the New York Legislature passed the Achieve Pay Equity Act (the Act) as part of the Women's Equality Agenda. 2015 N.Y. Lab. Law § 194 (McKinney), which can be found at...more

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