liquidated damage provision

El Dorado Irrigation Dist. v. Traylor Bros., Inc.
No. 03-949, 2006 U.S. Dist. LEXIS 1354 (E.D. Cal. Jan. 4, 2006)
In El Dorado Irrigation Dist. v. Traylor Bros., Inc., No. 03-949, 2006 U.S. Dist. LEXIS 1354 (E.D. Cal. Jan. 4, 2006), the court construed the effect of a liquidated damages clause on plaintiff’s ability to recover other categories of actual damages. The plaintiff sued the defendant contractor, seeking recovery of liquidated damages, loss of power sales, loss of public grant funds, and other damages related to the late completion of the project. The contract contained a liquidated damages clause, which defined the “damages for Contractor delay” at $500 per calendar day.
Continue Reading Liquidated Damages Clause Bars Separate Recovery for Lost Power Sales Even Though Loss is Many Times Greater Than Liquidated Damage Amount – Correction Damages, However, Are Separately Recoverable

Kingston Constructors, Inc. v. Washington Metropolitan Area Transit Authority,
1996 U.S. Dist. LEXIS 8427 (D.D.C. June 6, 1996)
Corps of Engineers Board of Contract Appeals erred in reducing amount of contractual liquidated damages from $1000 to $500 per day; Board should have declared provision unenforceable and awarded actual damages. 
The defendant Washington Metropolitan Area Transit Authority (“WMATA”) contracted with plaintiff Kingston Contractors, Inc. (“Kingston”) to remove and destroy existing electrical transformers in WMATA’s rapid transit rail system, and procure and install replacement transformers. The contract contained a liquidated damages provision which provided for $1000 for each calendar day of delay beyond a specified completion date.
Continue Reading District Court for District of Columbia Declares Liquidated Damages Clause Unenforceable