ENCON UTAH, LLC. V. FLUOR AMES KRAEMER, LLC.
210 P.3d 263 (2009)
NATURE OF THE CASE: This was a dispute over Encon (P) being awarded termination damages,
prejudgment interest, and attorney fees. The parties challenged each of the components of
the judgment.
FACTS: UDOT entered into a contract with FAK (D). As the general contractor, D provided a
payment bond for the project. D entered into a subcontract with P, under which P would
manufacture, furnish, and install concrete bridge girders. The total amount P was to be paid
under the subcontract was $6,842,342. UDOT partially terminated the prime contract with D
due to an injunction obtained by an environmental organization enjoining the project's
construction. D sent P a notice of partial termination of the subcontract. P filed a
complaint against D for breach of contract and a claim under Utah's payment bond statute.
The parties filed motions for partial summary judgment regarding the interpretation of the
subcontract provision that capped the amount of compensation P was entitled to recover for
early termination of the project. The court granted P's motion for partial summary judgment
and denied D's motion. After a four-day bench trial, the court entered judgment in favor of
P and jointly against D, awarding P termination damages, prejudgment interest, and attorney
fees. The total amount awarded to P was $1,699,563.50. D challenges each of these components
on appeal. This brief only addressed the prejudgment interest award.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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