Direct And Consequential Damages In Contract Disputes
November 3, 2011, 3:08 PM EDT
Law360, New York (November 3, 2011, 3:08 PM EDT) -- In a recent dispute where Haynes and Boone LLP represented the claimant, an arbitrator awarded over $4 million to a pipeline company that had purchased and installed respondent’s defective valves. The award included over $2 million in out-of-pocket costs, nearly $900,000 in past and future lost profits, and over $600,000 in attorneys’ fees.
The award’s linchpin was the fact that the parties’ contract did not include a clause excluding respondent’s liability for consequential damages. In a celebrated New Jersey case, arbitrators likewise awarded $14.5 million in...