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Delay Disclaimer May Not Apply To Indefinite Suspension Disclaimers; Suspension Of Work

Thursday, June 03, 2004 01:12 pm

 
Delay Disclaimer May Not Apply To Indefinite Suspension Disclaimers; Suspension Of Work

A federal district court has ruled that while no-damage- for-delay clauses are generally enforceable under Connecticut law, a question of fact existed as to whether the parties intended a clause to apply to an indefinite suspension of a subcontractor following the termination of the prime contractor.

Morganti National, Inc. held a contract to construct a prison facility in Brooklyn, New York, for the Federal Bureau of Prisons (FBOP). Morganti subcontracted the mechanical and plumbing work to Petri Mechanical Co., Inc. The subcontract, which was governed by the laws of Connecticut, contained a no- [...]

 
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