{"id":902328,"date":"2024-02-27T16:16:14","date_gmt":"2024-02-27T23:16:14","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902328"},"modified":"2024-02-27T16:16:23","modified_gmt":"2024-02-27T23:16:23","slug":"limitation-of-damages-on-the-way-out-virginia","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/limitation-of-damages-on-the-way-out-virginia\/","title":{"rendered":"Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?"},"content":{"rendered":"\n<p>Christopher G. Hill | <a href=\"https:\/\/constructionlawva.com\/are-construction-contract-limitation-of-liability-clauses-on-the-way-out-in-virginia\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Construction Law Musings<\/a><\/p>\n\n\n\n<p>Remember\u00a0<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-between-fraud-and-contract\/\">BAE Systems and Fluor<\/a>?\u00a0 This post is the third here at\u00a0<a href=\"https:\/\/constructionlawva.com\/about-2\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Construction Law Musings<\/a>\u00a0relating to this case which is a seemingly never-ending source for content.\u00a0 In the prior post discussing this case, the Court found that\u00a0<a href=\"https:\/\/law.lis.virginia.gov\/vacode\/title11\/chapter1\/section11-4.1:1\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Va. Code 1-4.1:1<\/a>\u00a0which bars waiver of a right to payment before work is performed did not apply because Fluor had provided work before execution of the contract or any change orders.<\/p>\n\n\n\n<p>In the\u00a0<a href=\"https:\/\/constructionlawva.com\/wp-content\/uploads\/2024\/02\/BAE-Systems-Ordnance-Systems-Inc.-v.-Fluor-Federal-Solutions-LLC.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">most recent opinion in this long-running litigation<\/a>,\u00a0 and after a motion to reconsider by Fluor that was granted, the Court re-examined this finding along with the contractual language found in the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/limitation-of-damages-held-inapplicable\/\">Limitation of Damages<\/a> (LOD) clause and came to the opposite conclusion regarding certain change orders that remained unpaid by BAE.<\/p>\n\n\n\n<p>The Court first looked to the language of the contract itself and specifically the language in the LOD provision that states \u201cExcept as otherwise provided in this Subcontract.\u201d&nbsp; The Court then looked at the change order provision and its typical equitable adjustment language and the mandatory nature of the equitable adjustment language. The Court found that the LOD provisions did not apply to change orders both because price increases due to change orders are not \u201cdamages\u201d and because of the exception language in the LOD provision itself.<\/p>\n\n\n\n<p>The Court then went on to analyze the claim by Fluor through the lens of Va. Code 11-4.1:1.&nbsp; The Court found, contrary to its prior holding, that the design and other work performed pre-contract under a separate undefined contract agreement (UCA) was not work performed under the Subcontract prior to its execution.&nbsp; In short, it held that work under the UCA, including ordering materials and design work, did not constitute work under the subsequent Subcontract.&nbsp; While funding for some of the work was provided under the UCA, the Subcontract specifically authorized Fluor to \u201cinitiate performance of the work.\u201d&nbsp; After making this finding, the Court held that the LOD provision was illegal under Virginia law and unenforceable.<\/p>\n\n\n\n<p>I highly recommend the opinion for your reading.\u00a0 Remember that\u00a0 these opinions are very fact and contract language specific so don\u2019t take action relating to your contractual claim without consulting an\u00a0<a href=\"https:\/\/christopherhill-law.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">experienced Virginia construction attorney<\/a>.<\/p>\n\n\n\n<p>Do you agree with the analysis?\u00a0 I\u2019d love to hear any thoughts.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Christopher G. Hill | Construction Law Musings Remember\u00a0BAE Systems and Fluor?\u00a0 This post is the third here at\u00a0Construction Law Musings\u00a0relating to this case which is a seemingly never-ending source for content.\u00a0 In the prior post discussing this case, the Court found that\u00a0Va. Code 1-4.1:1\u00a0which bars waiver of a right to payment before work is performed&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/limitation-of-damages-on-the-way-out-virginia\/\">Continue reading <span class=\"screen-reader-text\">Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?<\/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":[9895,224,12004],"class_list":["post-902328","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-limitation-of-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>Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia? 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