Initial Claim Does Not Limit Damages for Construction Delay
Published: May 31, 2017 by Luther LiggettA Court of Appeals ruled that a contractor may recover proven damages, even though the initial claim was for less than the court ultimately awarded.
An electrical contractor experienced impact damages when the general contractor repeatedly missed deadlines for temporary building enclosure. The electrical contractor submitted a claim by deadline, but before knowing the full extent of damages.
The Franklin County Court of Appeals affirmed an Ohio Court of Claims decision against the Ohio Facilities Construction Commission, finding that the State dispute resolution provisions create an inequitable situation.
“It would have been inequitable for the trial court to have restricted [the contractor] to its certified claim when OFCC forced [the contractor] to submit its claim before being able to take the full measure of their damages.”
“But conversely, had [the contractor] delayed in submitting a notice until after it became aware of the full extent of its damages…OFCC would doubtless argue that the claim should then have been denied on that basis.”
“Thus, according to OFCC’s view of the contract, there is no scenario under which [the contractor] could have been compensated for its full damages. This interpretation is a manifest absurdity and, for that reason, is to be avoided.”
Wood Elec., Inc. v. Ohio Facilities Contr. Comm., 2017-Ohio-2743.
If you have questions, please do not hesitate to contact attorney Luther L. Liggett of Graff & McGovern at 614-228-5800, ext. 6.