Court Dismisses Claims, Enforcing No Damages for Delay Clause

On May 23, 2019, the First Department issued a decision in Welsbach Elec. Corp. v. Judlau Contr., Inc., 2019 NY Slip Op. 04037, upholding the dismissal of claims because of a contract's no damages for delay clause, explaining:

The causes of action relating to additional work, delay and acceleration of scheduled work were all properly dismissed, as the alleged cause of the delays was within the scope of the no damages for delay provision of the agreement between plaintiff and defendant Judlau Contracting, Inc. (JCI). Plaintiff failed to adequately allege either bad faith or a breach of a fundamental, affirmative obligation expressly imposed on defendants by the agreement.

Since damages caused by delays are precluded by the agreement between plaintiff and JCI, plaintiff also cannot recover damages under the bond due to such delays.

(Internal quotations and citations omitted).

One of the reasons parties often choose to have their contracts governed by New York law is that courts generally enforce agreements as written. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client face a situation where you are unsure how to enforce rights you believe you have under a contract.