News & Analysis as of

Liquidated Damages Contract Terms Contract Disputes

Husch Blackwell LLP

Powerful Promises: Performance Guarantees and Liquidated Damages in Solar and Biogas EPC Contracts

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Performance guarantees and performance liquidated damages (PLDs) are an essential element of most engineering, procurement, and construction (EPC) contracts, especially those related to solar and biogas projects; they make...more

Venable LLP

Iamaleava v. Razorbacks: Are NIL Buyouts the Future of College Sports?

Venable LLP on

When a party to a contract fails to fulfill its contractual obligations, the non-breaching party often can seek damages or restitution. However, in the world of name, image, and likeness (NIL), it may not be so simple. ...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

Gray Reed on

Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

Lathrop GPM on

A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Stoel Rives -  Ahead of Schedule

The Role of Liquidated Damages Provisions in Construction Contracts

Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more

BCLP

Can liquidated damages clauses set general cap?

BCLP on

A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

Miller Starr Regalia

Valid Liquidated Damages Or Unenforceable Penalties? A Discussion Of Recent California Appellate Court Decisions

Miller Starr Regalia on

Contracting parties build liquidated damages provisions into their agreements in a variety of contexts. These provisions unquestionably can serve useful and legitimate functions including controlling risk exposure and...more

Allen Matkins

California Supreme Court Denies Review Of Default Interest Decision

Allen Matkins on

California Civil Code Section 1671 provides that a liquidated damages provision is either presumptively valid or invalid depending upon the subject matter of the contract.  If the contract involves “the retail purchase, or...more

Robinson+Cole Construction Law Zone

A Liquidated Damages Provision Might Not Liquidate All Potential Damages

The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more

White & Case LLP

Managing construction risks in Asia-Pacific: Philippines

White & Case LLP on

The Philippines construction industry is expected to grow with the introduction of the "Build, Build, Build" initiative and the amendment of a number of laws that would loosen restrictions on foreign investment. The...more

Stoel Rives -  Ahead of Schedule

Don’t Overlook a Contract’s Liquidated Damages Provision

We’ve written before about contractual provisions that sometimes go unnoticed or unappreciated. Another such provision is a “liquidated damages” provision. Liquidated damages are a way to agree beforehand to the amount of...more

WilmerHale

UK Supreme Court Confirms Correct Approach to Application of Liquidated Damages Clauses When Work Not Completed

WilmerHale on

The UK Supreme Court has recently confirmed an important principle regarding the application of liquidated damages clauses. In Triple Point Technology, Inc v PTT Public Company Ltd, the Supreme Court confirmed that, as a...more

Akin Gump Strauss Hauer & Feld LLP

Triple Point Technology, Inc v PTT Public Company Ltd – Court of Appeal Overturned

Sir Rupert Jackson sitting in the Court of Appeal had found that the liquidated damages clause providing for liquidated damages to be paid for each day of delay by the contractor “from the due date for delivery up to the date...more

Ward and Smith, P.A.

Issues Impacting Enforceability of Liquidated Damages in Construction Contracts

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Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract. Liquidated damages provisions are common in construction contracts to guard against damages that the...more

Akin Gump Strauss Hauer & Feld LLP

Take or Pay: Does the Law of Penalties Apply?

Q2 2020 saw a tangible increase in the number of queries from clients asking about the enforceability of take or pay clauses common in supply agreements. Intermingled with questions around force majeure, the key issue appears...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Indiana Supreme Court Clarifies When Liquidated Damages Become ‘Unenforceable Penalties’

On December 18, 2019, in American Consulting, Inc. d/b/a American Structurepoint, Inc. v. Hannum Wagle & Cline Engineering, Inc., et al., the Indiana Supreme Court provided clarity about when liquidated damages become...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Stipulated Sum and Liquidated Damages in Infrastructure Projects: What Are They, Are They Enforceable, and How Do You...

Most parties on a construction project know that a liquidated damage may be assessed for each day of the delay past a contract completion date. However, in infrastructure and highway contracts, there are many different events...more

McAfee & Taft

Liquidated Damages in Purchase and Sale Agreements: Oklahoma

McAfee & Taft on

A buyer and seller of real estate will often include a liquidated damages provision in the purchase and sale agreement as a means for stipulating the amount of damages the seller will receive in the event of a breach of the...more

Hogan Lovells

Liquidated damages on work never completed

Hogan Lovells on

The English Court of Appeal recently considered what should happen when a contractor, through its own fault, never delivers any completed work, despite having contracted to do so by a particular date. In Triple Point...more

Allen Matkins

California Statute May Be An Issue In Dispute Between President Trump And Adult Film Actress

Allen Matkins on

Not too long ago, I wrote about the lawsuit filed in California challenging a confidentiality agreement allegedly entered into by President Donald Trump. Clifford v. Trump, L.A. Super. Ct. Case No. BC 696568 (filed Mar. 6,...more

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