Jeffrey Haber | Freiberger Haber In Gamma USA, Inc. v. Pavarini McGovern, LLC, 2026 N.Y. Slip Op. 05237 (1st Dept. September 10, 2026), the Appellate Division, First Department, addressed the interplay between pass-through claims, liquidating agreements, liquidated damages provisions, and consequential damages waivers in complex construction disputes. The Court held that a subcontractor could not… Continue reading Court Enforces Liquidated Damages Cap and Consequential Damages Waiver in Pass-Through Claim
Tag: Consequential Damages
Should Your Construction Agreement Include a Waiver of Consequential Damages?
Kenneth R. Crystal and Allen Major | Phillips Lytle Many form construction agreements include a mutual waiver where both the owner and contractor waive claims against each other for consequential damages. What are consequential damages? And should the owner, contractor and subcontractor agree to waive them? What are the implications of the waiver? What Are… Continue reading Should Your Construction Agreement Include a Waiver of Consequential Damages?
Critical Risk Mitigation Provisions for Design Contracts – Part 2: Limitation of Liability Clauses
Barrett Lindsey and James Wright | Clark Hill As discussed in Part 1 of this series, design professionals face significant exposure for claims arising out of alleged errors and omissions in the performance of their services. While waivers of consequential damages help limit exposure to indirect losses, limitation of liability (“LOFL”) provisions serve as another… Continue reading Critical Risk Mitigation Provisions for Design Contracts – Part 2: Limitation of Liability Clauses
Direct vs. Consequential: Why Precise Contract Language Matters
Danny Cerrone, Jr. and Andrew Giel | Clark Hill When entering into a construction contract, it is important to understand and account for the differences between direct damages and consequential damages, as these differences can determine what damages may be recoverable. Direct damages, sometimes referred to as general or proximate damages, follow from the type… Continue reading Direct vs. Consequential: Why Precise Contract Language Matters
Consequential Damages: Are They Foreseeable?
Jeffrey Haber | Freiberger Haber In BLDG 44 Developers LLC v. Pace Companies N.Y., LLC, 2025 N.Y. Slip Op 32881(U) (Sup. Ct., N.Y. County July 25, 2025) (here), BLDG 44 Developers LLC sued Pace Companies New York, LLC for breach of contract, seeking approximately $16 million in consequential damages related to delays in a construction project… Continue reading Consequential Damages: Are They Foreseeable?