Shopping Cart (0) items Sign In

Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

‹ Prev article: 
 

Sub Will Cough Up 'expectation Damages' For Reneging On Bid

Saturday, October 01, 2011 08:55 am

 

Damages

Dynalectric Co. of Nevada, Inc. v. Clark & Sullivan Constructors, Inc., 2011 Nev. Lexis 43; 127 Nev. Adv. Rep. 41 (July 14, 2011)

When a sub refuses to perform, a contractor is entitled to expectation damages--that is, the difference between what it would have paid and what it did pay.

Clark and Sullivan Constructors, Inc. (C&S) bid on a project to expand the University Medical Center in Las Vegas. In its bid, it included a bid from subcontractor Dynalectric Company of Nevada, Inc. (Dynalectric) to perform electrical work on the project. When C&S informed Dynalectric that it had won the contract, Dynalectric refused to negotiate with C&S, and C&S was forced to contract with replacement subs for the project's electrical work. C&S sued Dynalectric for damages, and a district court awarded C&S $2.5 million, which represented the difference between Dynalectric's bid ($7.8 million) and the amount C&S paid the three replacement contractors to complete the work ($10.3 million). Dynalectric appealed, contending that the district court should not have awared C&S "expectation damages."

Nevada follows the doctrine of promissory estoppel, such that: "a promise which the promisor should reasonably expect to induce action or forbearance... and which does induce such action or forbearance is binding if injustice can be avoided only by enfor [...]

 
› Next article: 
 
Sign up now for Construction Claims Monthly Online! Your own virtual help desk of must-have techniques, tutorials, and how-to articles.
 
Join Now Construction Claims Monthly! Close
 
×

Dear Valued Customers,

We regret to announce that ProEdTech LLC and all its affiliate brands will cease operations on April 1, 2019.

We are no longer able to fulfill online orders. We will fullfill all DVD and book orders already placed.

Customers of canceled webinars and subscription products may request a refund at (800) 223-8720 or service@proedtech.com. You must do so by April 1, 2019.

Thank you for your business and loyalty over the years. We sincerely apologize for any inconvenience caused.


Best regards,
The ProEdTech Team