January 12, 2004

Court Allows Trial to Proceed to Determine Delay Damages

Sea Crest Construction Corp. v. United States of America

Sea Crest submitted a successful bid design and construct 118 family housing units at the United Stages Military Academy. Following acceptance of award and issuance of a notice to proceed, Sea Crest submitted a revised layout drawing which the government rejected as not meeting the original specifications. Sea Crest subsequently submitted a number of other layout drawings, in part due to changes requested by the government. After completion of the project, Sea Crest submitted claims for delay, breach of contract, breach of warranties of good faith and fair dealing, quantum meruit, unjust enrichment, and bad faith due to rejection of the first revised drawing and failure to approve a final site plan in a timely manner. The court ruled the initial plan was properly rejected but a trial was necessary to determine if and to what extent delay damages may be proper.

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