Potomac Constructors, Inc. v. Efco Corp.

503 F.Supp.2d 731 (2008)

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Nature of the Case

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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 timeline 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.