Encon Utah, LLC v. Fluor Ames Kraemer, LLC

210 P.3d 263 (2009)

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Encon Utah, LLC v. Fluor Ames Kraemer, LLC

Utah Supreme Court
210 P.3d 263 (2009)

  • Written by Tammy Boggs, JD

Facts

In 2000, the state department of transportation (DOT) entered in a design-build contract with Fluor Ames Kraemer, LLC (FAK) (defendant) to construct a highway. In 2002, FAK subcontracted with Encon Utah, LLC (Encon) (plaintiff) for Encon to manufacture and install concrete bridge girders at a fixed price of $6,842,342. In 2003, the DOT partially terminated the design-build contract with FAK due to an injunction stopping the construction project. In May 2003, FAK sent Encon a notice of partial termination of the subcontract. Encon sued FAK to recover damages. The court held a bench trial and awarded Encon damages totaling $1,699,564 for the contract termination, prejudgment interest, and attorney fees. The trial court found that Encon’s damages were subject to mathematical calculation as of the contract-termination date. Further, FAK and Encon had agreed that it was reasonable for Encon to earn a 10 percent profit on its completed work. FAK appealed, challenging the award of prejudgment interest.

Rule of Law

Issue

Holding and Reasoning (Durrant, J.)

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