Old Colony Constr., LLC v. Town of Southington
Annotate this CaseOld Colony Construction, LLC failed timely to complete a public works contract with the Town of Southington. The Town elected to terminate the contract on the basis of convenience. Old Colony subsequently filed suit against the Town alleging breach of contract. The Town counterclaimed seeking liquidated damages for breach of contract. The trial court rendered judgment in favor of Old Colony on its breach of contract claim and in favor of the Town on its liquidated damages counterclaim. The court awarded the Town liquidated damages and permitted the set off of those damages against the damages awarded to Old Colony for the Town’s failure to pay sums due under the contract’s termination for convenience provision. Old Colony appealed, arguing that the Town was barred from collected liquidated damages because termination for convenience precludes any default based remedies available for termination for cause and because the Town’s contribution to the delay rendered the liquidated damages provision unenforceable. The Supreme Court affirmed, holding that the trial court properly awarded liquidated damages and properly denied Old Colony’s request for an equitable adjustment in the contract.
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