News & Analysis as of

Liquidated Damages

Under Construction - December 2017

by Snell & Wilmer on

Letter from the Editor - Welcome to the final 2017 edition of our Under Construction newsletter. It is hard to believe that 2018 is right around the corner! In this issue, we highlight several topics affecting the...more

Avoid Doubling FLSA Overtime Damages with Proper Analysis and Documentation

Benjamin Franklin once advised that an ounce of prevention is worth a pound of cure. This axiom is still relevant today, especially in the context of the Fair Labor Standards Act (FLSA). As originally written, the FLSA...more

Chapter 11 Plan Not Providing for Payment of Make-Whole Premium Impaired Noteholders

by Jones Day on

In In re Ultra Petroleum Corp., 2017 BL 335015 (Bankr. S.D. Tex. Sept. 21, 2017), the U.S. Bankruptcy Court for the Southern District of Texas ruled that certain private-placement noteholders were entitled to receive a...more

Be Careful When Using Liquidated Damages with Your Non-Compete Clause

by Burns & Levinson LLP on

As I have counseled many clients, a non-compete provision is different than most other contractual terms, because simply having mutual consent and consideration will not automatically render it enforceable for reasons of...more

A Myth About Delay – Revisited

by Gray Reed & McGraw on

Construction lawyers routinely deal with delay claims. I have presented or defended more of them than I can remember. That is why I was curious when, earlier this year, I received a series of email invitations to...more

Four project risks that can impact the success of Petrochemical projects

by White & Case LLP on

Stay current on your favorite topics An increasing number of refinery and petrochemical projects are being developed under a project structure in which one or more associated facilities (AFs) are constructed, owned, financed,...more

Michigan Court Of Appeals Holds That Contractor Who Failed To Timely Seek A Time Extension Is Barred From Contesting Liquidated...

by Pepper Hamilton LLP on

Abhe & Svboda, Inc. v. State of Michigan Department of Transportation, 2017 Mich. App. Lexis 1387 (August 29, 2017) - Contractor Abhe & Svboda, Inc. (“A&B”) entered into a contract with the Michigan Department of...more

The 2017 AIA Changes that Matter to Owners

Last time, we discussed how some of the 2017 revisions to the American Institute of Architects (AIA) form design and construction contracts benefit general contractors. Such revisions added clarity to provisions concerning...more

Third Circuit Bats Away Employer's Flexible Time Break Policy

Department of Labor regulations issued under the Fair Labor Standards Act (29 C.F.R. § 785.18) state that any break time less than 20 minutes for nonexempt employees is considered compensable working time. Earlier this month,...more

Whatever Happened To...The Wage Claim of Strippers (Or, “Exotic Dancers”) As Employees?

by Shipman & Goodwin LLP on

Back in 2011, I discussed a titillating case of strip club dancers (or, a decision says, “performers”, “entertainers”, “dancers” or even “exotic dancers” — although not “strippers”) who were trying to claim wages for the time...more

Do Employers Need to Pay for Short Rest Breaks?

As longtime readers of this blog know, there are some common myths regarding wage and hour issues. One of the most prevalent of these concerns rest breaks. Although many people think that workers are entitled by law to...more

Bankruptcy Court Rules "Make-Whole" Provision Creates Enforceable Liquidated Damages

by Jones Day on

The Situation: After a ruling in In re Ultra Petroleum Corp. by the U.S. Bankruptcy Court for the Southern District of Texas, certain private-placement noteholders are entitled to a "make-whole" premium in excess of $200...more

Massachusetts Federal Court Decision Highlights the Importance of FMLA Training and Compliance

Navigating leave issues can be difficult: There are several statutes that provide employees with different, yet sometimes overlapping rights, and every situation is unique. Employers must ensure that members of management and...more

Who says you can’t choose between liquidated damages or actual damages?

by Snell & Wilmer on

In Colorado, courts enforce liquidated damages provisions if three elements are satisfied: (1) the parties intended to liquidate damages; (2) the amount of liquidated damages was a reasonable estimate of the presumed actual...more

Concurrent delay and the 'prevention principle'

by White & Case LLP on

In a judgment issued earlier this week, the English High Court considered whether a contract excluding any claim for an extension of time in respect of periods of concurrent delay caused time to be rendered "at large" due to...more

"Wage Theft"/"Wage Recovery" Bills Introduced

by Fisher Phillips on

Pending proposals would radically transform the federal Fair Labor Standards Act and the related federal Portal-to-Portal Act.  Entitled the "Wage Theft Prevention and Wage Recovery Act" in both the House (H.R. 3467) and the...more

Liquidated damages for sectional completion

by White & Case LLP on

In the recent English High Court case of Vinci Construction UK Ltd v. Beumer Group UK Ltd, the court considered whether liquidated damages were enforceable under a construction contract which provided for sectional...more

Third Circuit Clarifies What Constitutes a Willful Violation of the FLSA

The federal Fair Labor Standards Act (FLSA) establishes requirements for minimum wages and overtime pay. The FLSA’s requirements can be complex, and employers can face significant liability for unpaid wages and liquidated...more

Court Rejects Cap on FCA Damages for Allegations of Subcontracting Plan Fraud

by Bass, Berry & Sims PLC on

Last month, the U.S. District Court for the Eastern District of Washington denied a motion to limit damages against a government contractor, United States ex rel. Savage v. Washington Closure Hanford LLC, where the government...more

Ultra Court Confirms Make-Whole Amount and Post-Petition Interest for OpCo Noteholders

by Morgan Lewis on

The court awarded OpCo Noteholders in excess of $320 million in Make-Whole Amount and post-petition interest, confirming that make-whole is an enforceable liquidated damage claim....more

A Legal and Commercial Checklist for Bankable Solar EPC Contracts: A Developer’s Guide

Large-scale solar development is big business, and solar EPC Contracts are big business by association. In Q2 2017, the U.S. solar market installed 2,387 MWdc, an 8% increase year-over-year, and the largest second quarter...more

How to guarantee bad performance from your vendors

by Thompson Coburn LLP on

A well-crafted master services agreement for outsourced services can create a powerful alliance between you as the customer and the service provider or vendor. On the other hand, there are some pitfalls will likely or...more

Ineligible Coach On The Field – Assessing Whether Restrictions Are Enforceable In Contracts

With the start of college football season around the corner, attention turns to off-season shake ups in coaching staffs. One controversial change involved defensive coordinator Robert H. Shoop. Shoop traded in his blue and...more

Liquidated Damage Provisions – A Good Idea or an Unenforceable Penalty?

by Faegre Baker Daniels on

Construction contracts often contain a provision for a stipulated or “liquidated” damage amount in the event of specified contract breaches. These provisions can be an effective tool to recover losses that otherwise may go...more

The Rise of Biometric Lawsuits in Illinois

by Vedder Price on

In the past few weeks, five putative class action lawsuits have been filed under the Illinois Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1 et seq., targeting defendants in the health care, senior living,...more

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