Piketon v. Boone Coleman Constr., Inc.
The Village of Piketon and Boone Coleman Construction, Inc. entered into a contract for construction of a public road. The contract contained a liquidated damages provision specifying that Boone Coleman would pay $700 to Piketon for each day after the specified completion date that the contract was not substantially completed. Boone Coleman did not complete the project until well over a year after the parties’ extended completion date. Boone Coleman sued Piketon alleging that Piketon had failed to pay $147,477 of the contract price for the construction. Piketon filed a counterclaim seeking liquidated damages. The trial court awarded Piketon $277,900 in liquidated damages. The appellate court reversed, holding that the resulting amount of liquidated damages was so unreasonable as to constitute a penalty. The Supreme Court vacated the judgment of the court of appeals, holding that the court erred in its use of a retrospective analysis to reach its conclusion and in failing to focus on the per diem nature of the liquidated damages. Remanded for consideration of the enforceability of the liquidated damages provision in light of this opinion. View "Piketon v. Boone Coleman Constr., Inc." on Justia Law