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Limitation Clause Applied Only To Late Completion Disclaimers; Liquidated Damages

Saturday, July 09, 2005 03:19 pm

 

A federal district court has ruled that a limitation of liability clause applied only to late completion, not other contractor liability to the project owner. Humphreys (Cayman) Limited awarded a contract to Fluor Daniel Caribbean, Inc. for construction of a hotel property. A subsection of the General Conditions, entitled "Time, Delays and Extensions,"included the following statement.

"Notwithstanding anything herein or in the [contract] to the contrary, [Fluor's] aggregate liability for direct and liquidated (if any) damages shall in no case exceed ten percent of the contract value, and [Humphreys] agrees to release [Fluor] for all damages in excess of ten pe [...]

 
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