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Posted by: Tanja Trezise on Nov 16, 2012

Court: TN Court of Appeals

Attorneys 1:

Gregory L. Cashion, S. Joseph Welborn, Craig N. Mangum, Nashville, Tennessee, for the appellant, RCR Building Corporation

Attorneys 2:

Gerald A. Smith, Jr., Brentwood, Tennessee, for the appellee, Pinnacle Hospitality Partners, LLC

Judge(s): HIGHERS

This appeal involves a contract for the construction of a hotel. The project owner refused to make the final payment owed to the general contractor, claiming that it was entitled to withhold $237,000 in liquidated damages because the project was not completed on time, in addition to deducting other “offsets” under the contract. The general contractor claimed that the owner was not entitled to liquidated damages for several reasons, including the fact that the owner had caused delays, and the fact that the owner had failed to make a timely claim for liquidated damages as required by the contract. The trial court granted partial summary judgment to the owner on the issue of liquidated damages, allowing the owner to subtract $237,000 from the final payment it owed under the contract. The court also resolved several other issues between the parties. The trial court declared the owner to be the prevailing party in the litigation and awarded the owner its attorney’s fees. The general contractor appeals. We affirm in part and reverse in part and remand for further proceedings.