{"id":888247,"date":"2016-04-19T16:20:33","date_gmt":"2016-04-19T22:20:33","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=888247"},"modified":"2016-04-19T16:20:33","modified_gmt":"2016-04-19T22:20:33","slug":"can-active-interference-by-owner-invalidate-a-no-damages-for-delay-clause-sometimes","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/can-active-interference-by-owner-invalidate-a-no-damages-for-delay-clause-sometimes\/","title":{"rendered":"Can Active Interference By Owner Invalidate A No Damages For Delay Clause? Sometimes."},"content":{"rendered":"<p>Matthew DeVries | Best Practices Construction Law | April 12, 2016<\/p>\n<p>Some will say that a \u201c<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/limitations-of-liability-scenario-two-no-damages-for-delays-clauses\/\" target=\"_blank\">no damages for delay<\/a>\u201d clause is harsh. \u00a0Well, it depends on which hat you wear. If you are a contractor, you have a reasonable expectation that you will be paid for the extra work to overcome a delay beyond your control, especially if the owner causes or contributes to the delay. If you are an owner, you may have an expectation that the contractor is not going to get extra compensation when there are delays to the project. Who\u2019s right?<\/p>\n<p><a href=\"http:\/\/www.bestpracticesconstructionlaw.com\/wp-content\/uploads\/sites\/142\/2016\/04\/Workers.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-2910\" src=\"http:\/\/www.bestpracticesconstructionlaw.com\/wp-content\/uploads\/sites\/142\/2016\/04\/Workers-640x427.jpg\" alt=\"Workers\" width=\"640\" height=\"427\" \/><\/a><\/p>\n<p>In <em>C and H Electric, Inc. v. Town of Bethel<\/em>, 312 Conn. 843 (2014), the Connecticut\u00a0Supreme Court held that a Contractor\u2019s claims against a Town for delay damages could not overcome the \u201c<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/todays-contacts-enforceability-issue-damages-delay-disruption-clauses\/\" target=\"_blank\">no damages for delay<\/a>\u201d clause because\u00a0the Town\u2019s conduct did not constitute \u201cactive interference\u201d within the meaning of the contract. \u00a0The Contractor was hired by the Town to perform electrical\u00a0work on a high school renovation project. The project also involved asbestos abatement work\u00a0performed by another contractor, whose work was supposed to have been complete prior to the start of all other renovation work. While only 70% of the asbestos work had been completed, the Town instructed the Contractor to commence its work, which was interrupted numerous times by the ongoing asbestos abatement work. The Contractor incurred additional costs for relocating and re-sequencing its work. \u00a0The Town rejected the Contractor\u2019s request for additional compensation.<\/p>\n<p>At trial, the Contractor argued that the contractual \u201cactive interference\u201d exception to the \u00a0 \u00a0 \u201c<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/texas-supreme-court-recognizes-exceptions-enforcement-damages-delay-clauses\/\" target=\"_blank\">no damages for delay<\/a>\u201d clause provided relief. Since the Town knew the asbestos work had not been complete, the Contractor argued that the Town should not have ordered it to begin the work. \u00a0The trial court agreed with the Town\u2019s argument that the notice to proceed was not in bad faith or malicious and, therefore, was not an active interference.<\/p>\n<p>On appeal, the Connecticut Supreme Court agreed with the Contractor\u2019s proposed interpretation that an \u201cactive interference\u201d required a showing of an affirmative willful act\u00a0that unreasonably interferes with the contractor\u2019s work. However, the Court affirmed the trial court\u2019s conclusion that the Town\u2019s conduct was not willful or unreasonable because there was no showing that the Town actually knew the asbestos work would cause interference.<\/p>\n<p><strong>So what?<\/strong> Based upon the laws of other states, the Court in\u00a0<em>C and H Electric\u00a0<\/em>determined that there could not be an \u201cactive interference\u201d without proof that the Town directed the Contractor to commence its work <em>despite actually knowing<\/em> that the Contractor\u2019s<br \/>\nwork would be delayed. There are a few lessons from this case&#8230;<\/p>\n<p><a href=\"http:\/\/www.bestpracticesconstructionlaw.com\/2016\/04\/articles\/legal-trends\/can-active-interference-by-owner-invalidate-a-no-damages-for-delay-clause-sometimes\/\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Matthew DeVries | Best Practices Construction Law | April 12, 2016 Some will say that a \u201cno damages for delay\u201d clause is harsh. \u00a0Well, it depends on which hat you wear. If you are a contractor, you have a reasonable expectation that you will be paid for the extra work to overcome a delay beyond&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/can-active-interference-by-owner-invalidate-a-no-damages-for-delay-clause-sometimes\/\">Continue reading <span class=\"screen-reader-text\">Can Active Interference By Owner Invalidate A No Damages For Delay Clause? Sometimes.<\/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":[9],"tags":[72,8998],"class_list":["post-888247","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-construction-contracts-2","tag-no-damages-for-delays","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>Can Active Interference By Owner Invalidate A No Damages For Delay Clause? 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