Potomac Constructors, LLC v. EFCO Corp.
United States District Court for the District of Maryland
530 F. Supp. 2d 731 (2008)
On a major bridge-replacement project, Potomac Constructors (plaintiff) subcontracted steel formwork to EFCO (defendant) under a contract limiting EFCO's liability specifically to costs for defective workmanship or materials and expressly excluding consequential and incidental damages; when some formwork proved defective, EFCO repaired it as required, but the repairs caused project delays, and Potomac sued for delay damages, which EFCO argued were excluded by the contract's limitation clause. EFCO moved for summary judgment.
Whether contractual restrictions on breach-of-contract damages are enforceable so long as they are not unconscionable and do not fail of their essential purpose.