POTOMAC CONSTRUCTORS, INC. V. EFCO CORP.
503 F.Supp.2d 731 (2008)
NATURE OF THE CASE: EFCO's (D) motion for Partial Summary Judgment seeks to exclude
damages which it claims were limited by the contract between the parties.
FACTS: Potomac (P) was the general contractor for the Maryland approach spans in the
$2.5-billion-dollar project to replace the Woodrow Wilson Bridge. P's contract with the
Maryland State Highway Administration included a strict time-line and daily financial
penalties for delays. P entered into a purchase order agreement with D to engineer and
supply steel 'formwork' for $2.075 million dollars. The contract terms stated that Seller
shall, in no event, be liable for any additional or consequential damages. . . . The
Property sold hereunder is warranted against defective workmanship or materials only, and
Seller's liability is strictly limited to the repair or replacement of any defective
property. . . . In no event shall Seller's liability exceed the actual and direct costs of
labor, materials, transportation and equipment reasonably necessary for the repair or
replacement of equipment covered, nor include any other incidental, indirect, or
consequential damages. . . . Seller will use all reasonable means to deliver within the time
specified, but assumes no liability for loss or damage arising from delay, or no [sic]
fulfillment of contract by reasons of fires, strikes, delays in transportation, regulations
of the United States Government, or any cause which is unavoidable or beyond its control. D
argues that the language quoted above 'excluded incidental, indirect, or consequential
damages, and damages for delays,' and limits D's liability to the costs of repairing or
replacing any defective property sold under the agreement. P sued D for $13 million in
damages.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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