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 on liability but the case proceeded to trial on damages, where a jury awarded Black & Veatch only one dollar.
The court’s reasoning
The Seventh Circuit reviewed the evidentiary rulings and jury instructions, finding no abuse of discretion regarding the admission of evidence or the nominal damages instruction. On the cross-appeal, the court analyzed the subcontract under Illinois law. It determined that while the contract required staying on schedule, it was ambiguous whether the subcontractor was automatically responsible for all delays or only those it caused. The court found a material dispute of fact regarding whether Boldt’s notices of delay were adequate under the contract terms. Consequently, summary judgment was inappropriate on the wrongful termination claim.
What it means going forward
The case is remanded for a new trial on the issue of liability to determine if the subcontractor was wrongfully terminated. The jury’s finding on damages remains in effect, meaning the general contractor can only recover nominal damages unless it proves a new basis for damages in the liability phase.