Reliance Insurance Co. v. Utah Department Of Transportation

858 P.2d 1363 (1993)

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Nature of the Case

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Facts

The Utah Department of Transportation (D) contracted with Young Sons to raise a section of Highway 80 from rising waters of the Great Salt Lake. The contract price was $9,941,000. The contract called for completion by October 15, 1985, with a liquidated damages clause of $600 per day every day thereafter the contract was not completed. Reliance Insurance (P) was the surety for Young Sons. The project was delayed a number of times due to weather. Young eventually defaulted on a number of projects, and P stepped in and began to work out the liquidated damages clause with D. The final delay equaled 156 days with 85 days allowed for extensions. D withheld $93,600 from final payment. P attempted to recover the liquidated damages. The trial court upheld the clause and affirmed the damages. P appealed.