Thorobird Grand LLC et al. v M. Melnick & Co., Inc. et al.

Holding The court affirmed the dismissal of plaintiffs’ claims for liquidated damages calculated on a per-building basis, holding that the construction contract limited such damages to the project as a whole. Additionally, the court ruled that the surety’s liability under the performance bond was capped at the general contractor’s contractual responsibilities, barring separate consequential damages.

The court’s words

the plain language of the parties' agreements restricts the type of damages available

2026 NY Slip Op 06546, at the official text

the construction contract expressly limited delay damages to the liquidated damages set forth in the contract

2026 NY Slip Op 06546, at the official text

the amount of daily liquidated damages stated in the construction contract applied to the project as a whole

2026 NY Slip Op 06546, at the official text

liquidated damages would be assessed on a project basis and not a per building basis

2026 NY Slip Op 06546, at the official text