Background
Black & Veatch Construction, Inc. hired The Boldt Company as a subcontractor for a windfarm project in Illinois. The project fell behind schedule due to delays in parts delivery, unsuitable soil conditions, and equipment issues. Black & Veatch terminated Boldt for cause, and Boldt sued for wrongful termination and unpaid work. The district court granted summary judgment to Black & Veatch and later awarded Black & Veatch only nominal damages after a trial on damages.
The court’s reasoning
The Seventh Circuit reviewed the evidentiary rulings and jury instructions, finding no abuse of discretion. The court determined that the district court correctly instructed the jury on nominal damages under Illinois law. Regarding the summary judgment, the court found the subcontract ambiguous. While the contract required staying on schedule, it did not clearly establish that the subcontractor was responsible for all delays unless it provided specific notice. The court concluded that a jury must decide whether the parties intended to assign blame for delays absent notice and whether the notices provided were adequate.
What it means going forward
The case is remanded for further proceedings to determine if Boldt was wrongfully terminated. The nominal damages award for Black & Veatch remains in effect, but the liability issue is reopened for a jury trial.