{"id":888121,"date":"2016-04-12T11:30:58","date_gmt":"2016-04-12T17:30:58","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=888121"},"modified":"2016-04-12T11:30:58","modified_gmt":"2016-04-12T17:30:58","slug":"contractual-liquidated-damages-update-3-0","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/contractual-liquidated-damages-update-3-0\/","title":{"rendered":"Contractual Liquidated Damages Update 3.0"},"content":{"rendered":"<p>Philip J. Truax, Esq. | Wickens Herzer Panza Cook Batista | April 4, 2016<\/p>\n<p>Several editions ago, we published an article relating to the <em>Boone Coleman v. Village of Piketon\u00a0<\/em>case, which struck down a $278,000 liquidated damages award for construction delays because the amount was disproportionately high compared to the original contract value and amounted to a penalty.\u00a0 Soon after that newsletter, we wrote about the <em>Kent State University-Geno Ford<\/em> case, which affirmed a $1.2 million <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/think-that-liquidated-damages-provision-you-just-agreed-to-is-unenforceable-think-again\/\" target=\"_blank\">liquidated damages<\/a> award for Ford\u2019s breach of his coaching contract, even though the award was four-times the amount of the annual contract value.<\/p>\n<p>A few months ago, the Ohio Supreme Court heard an appeal over the <em>Boone Coleman<\/em> case, overturned the decision, and held that the $278,000 award was NOT disproportionately high compared to the $683,000 contract value.\u00a0 As a brief recap, Boone Coleman was a construction contractor on a public improvement project for the Village of Piketon, Ohio.\u00a0 The construction contract included a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/ohio-supreme-court-upholds-liquidated-damages\/\" target=\"_blank\">liquidated damages<\/a> provision of $700 for every day that Boone Coleman failed to meet the completion date.\u00a0 The contractor did not complete the work on time, and completion was delayed by 397 days.\u00a0 The trial court awarded Piketon the entire $277,900 in liquidated damages sought by the Village.<\/p>\n<p>Again, the Appeals Court reversed the trial court\u2019s decision because the damages amount was disproportionately high compared to the original contract value. The Supreme Court, however, found that the appellate court\u2019s focus on the total <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/prospective-reasonableness-assessing-liquidated-damages-in-construction-contracts\/\" target=\"_blank\">liquidated damages<\/a> amount against the contract value, as opposed to the per diem amount of the penalty, was improper. Since other Ohio appellate districts have upheld per\u2011day liquidated damages amounts greater than $700, the Court held that the Village\u2019s per\u2011day amount and, thus the entire $277,900 award, was enforceable.<\/p>\n<p>While the <em>Boone Coleman<\/em> case can be said to be a public construction case, the lesson here is&#8230;<\/p>\n<p><a href=\"http:\/\/www.wickenslaw.com\/publications\/contractual-liquidated-damages-update-3-0\/\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Philip J. Truax, Esq. | Wickens Herzer Panza Cook Batista | April 4, 2016 Several editions ago, we published an article relating to the Boone Coleman v. Village of Piketon\u00a0case, which struck down a $278,000 liquidated damages award for construction delays because the amount was disproportionately high compared to the original contract value and amounted&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/contractual-liquidated-damages-update-3-0\/\">Continue reading <span class=\"screen-reader-text\">Contractual Liquidated Damages Update 3.0<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,9],"tags":[12,72,9112],"class_list":["post-888121","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-contracts","tag-construction","tag-construction-contracts-2","tag-liquidated-damages","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Contractual Liquidated Damages Update 3.0 - Advise &amp; 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