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New Milford v. Standard Demolition Services, Inc.

Conn. App. Ct.April 26, 2022No. AC43874Cited 5 times
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Case Details

Judge(s)
Bright; Elgo; Bear
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
appeal

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

The trial court found the defendant contractor breached the contract and awarded the plaintiff town liquidated damages of 254 days less retainage. On appeal, the appellate court affirmed the breach of contract finding but remanded for determination of whether additional compensable damages beyond liquidated damages were proven.

Excerpt

The plaintiff town sought to recover damages from the defendant contractor for breach of contract. The plaintiff owned a vacant brass mill factory that was contaminated with, inter alia, polychlorinated biphenyls (PCBs). The plaintiff, on the advice of consultants, applied to the United States Environmental Protection Agency (EPA) for permission to demol- ish and clean up the property and engage contractors to perform the work. The plaintiff issued a notice inviting prospective contractors to provide bids for the third phase of the project, which involved the demolition, abatement and remediation of the property. The notice indi- cated that the contractor would be allowed to keep the scrap value of any structural steel salvaged from the site. The plaintiff made all public information about the project available to prospective bidders, including a report from one of its consultants that referenced the presence of PCBs throughout the building. The plaintiff also provided a letter to all prospective bidders clarifying that the selected contractor would be responsible for the sampling and disposal of any PCB contaminated material. The defendant submitted the winning bid for the contract, in which it did not allocate any funds for the remediation or disposal of any contaminated structural steel on the site, as it believed that the steel was not contaminated and could be recycled without remediation. Once selected, the defendant executed a certification acknowledging that it had read and agreed to abide by all conditions set forth in the EPA's approval letter for the third phase of the project, which included attachments regarding the cleanup of PCB contaminated material and correspondence between the EPA and the plaintiff regarding the PCB contamination of various materials, including steel beams. The parties then entered into a contract for the phase three work, which expressly incorporated the EPA approval letter and established a 140 day deadline for the defendant to

What This Ruling Means

**What Happened** The town of New Milford hired Standard Demolition Services to tear down and clean up a contaminated old brass factory. The building contained dangerous chemicals called PCBs that required special handling under EPA rules. When Standard Demolition failed to complete the work properly according to their contract, the town sued them for breaking their agreement. **What the Court Decided** Both the trial court and appeals court agreed that Standard Demolition broke their contract with the town. The trial court ordered the company to pay liquidated damages (a predetermined penalty amount) for 254 days, minus some money the town still owed them. However, the appeals court sent the case back to determine if the town deserved additional compensation beyond the preset penalty amount. **Why This Matters for Workers** This case shows that courts will enforce contract terms when companies fail to meet their obligations, even in complex environmental cleanup work. For workers, this demonstrates that legal agreements have real consequences when employers or contractors don't fulfill their promises. It also highlights the importance of clear contract terms that specify penalties for non-performance, which can protect everyone involved in a project.

This summary was generated to explain the ruling in plain English and is not legal advice.

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