Liquidated Damages

Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).When damages are not predetermined/assessed in advance, then the amount recoverable is said to be 'at large' (to be agreed or determined by a court or tribunal in the event of breach).At common law, a liquidated damages clause will not be enforced if its purpose is to punish the wrongdoer/party in breach rather than to compensate the injured party (in which case it is referred to as a penal or penalty clause).
Posts about Liquidated Damages
  • HOW DOES YOUR CONSTRUCTION CONTRACT TREAT FLOAT

    …., 19 Cl. Ct. 474, 481 (1990) that discusses the concept of total float by using a simple example that may apply to a residential house job: To reiterate, a critical path activity is one which, if allowed to grow in duration at all, will cause the overall time required to complete the project to increase. By contrast, an activity with float time may…

    Florida Construction Legal Updates- 7 readers -
  • THE CONSTRUCTION PROJECT IS LATE – ALLOCATION OF DELAY

    … and contractor on any late construction project. Now the fun begins regarding the allocation of the delay! Through previous articles, I discussed that in this scenario the burden really falls on the contractor to establish that the liquidated damages were improperly assessed against it and, thus, it is entitled to additional time and extended general…

    Florida Construction Legal Updates- 11 readers -
  • IS PERFORMANCE BOND LIABLE FOR DELAY DAMAGES?

    … General Hospital. Rather, the Eleventh Circuit stated: Larkin General Hospital could possibly be interpreted to mean that a performance bond surety cannot be held liable for…delay damages, whether liquidated or unliquidated, unless the responsibility for delay damages is specified on the face of the performance bond. However, we do not read…

    Florida Construction Legal Updates- 11 readers -
  • Madison – St. Clair Record

    … in federal court against the city of Cairo alleging it violated the Fair Labor Standards Act. According to the complaint, Coleman worked for more than 40 hours per week during his employment with the city, March 2014 to February 2016, without proper compensation. The plaintiff alleges the city required him to work eight hours and 15 minutes per day…

    Due Diligence- 33 readers -
  • Botched Franchise Deal Leads to Legal Malpractice Claim

    … not with Hyatt but with the lawyers. According to the complaint, the documents drafted by the law firm were “incomplete” and vague. Things get worse. Not only did the hotel not get to reopen as a Hyatt, Hyatt claims it is owed $7.7 million dollars in liquidated damages. That case is still pending. After being served with the Hyatt complaint in 2015…

    Legal Malpractice - Chris Trebatoski- 44 readers -
  • BURDEN OF PROOF CHALLENGING ASSESSMENT OF LIQUIDATED DAMAGES

    … be necessary, to analyze the critical path of the schedule to isolate excusable delay and any concurrent delay establishing that although the project was late there were events or issues that would reduce or fully negate the number of days the owner is assessing liquidated damages for. Please contact David Adelstein at dma@kirwinnorris.com or (954) 759…

    Florida Construction Legal Updates- 11 readers -
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