United States Federal Circuit

In this case, plaintiff entered into a contract with the federal government to construct a building for the Coast Guard, and after completion, the government imposed liquidated damages for delay in completion. Plaintiff thereafter filed this action requesting remission of the liquidated damages and requesting additional compensation based on work performed in response to government requests that plaintiff alleges amounted to contract changes. Judgment in favor of defendant is affirmed, where: 1) the liquidated damages clause is enforceable, as the rate is reasonable and not so disproportionate to the amount of property loss as to constitute an impermissible penalty; and 2) plaintiff did not comply with the written-notice requirement of the contract’s changes clause, and so is not entitled to additional compensation.

Appellate Information

• Decided 02/12/2015
• Published 02/12/2015

Judges

Court

• United States Federal Circuit

Counsel