Encon Utah, Llc. v. Fluor Ames Kraemer, Llc.

210 P.3d 263 (2009)

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Nature of the Case

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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.