Spang Industries, Inc. Fort Pitt Bridge Division v. Aetna Casualty & Surety Co.
United States Court of Appeals, Second Circuit
512 F.2d 365 (1975)
Fort Pitt (plaintiff), an experienced steel subcontractor working with general contractor Torrington on an upstate New York highway project, agreed to deliver bridge steel by June 1970 but repeatedly missed revised delivery commitments, ultimately delivering the steel in September 1970 and failing to arrange its unloading, forcing Torrington to incur extra unloading costs; the resulting construction delay forced Torrington to rush and complete an entire concrete bridge-deck pour in a single overnight session under special permission at temperatures near freezing, incurring significant extra expense, to avoid missing the concrete-pouring window before winter. Fort Pitt sued Torrington and its surety Aetna (defendant) for its subcontract balance, Torrington counterclaimed for its delay-caused damages, the cases were tried together, and the district court found Fort Pitt breached the contract, awarding Torrington its rush-related damages offset against Fort Pitt's subcontract balance; Fort Pitt appealed, arguing Torrington's rush costs were unforeseeable special damages.
Whether, when potential damages from a breach of contract may be foreseen by the parties at the time of contract formation and a breach actually occurs, the breaching party must provide recovery for these damages to the injured party.