Dep’t of Transp. v. White Oak Corp.

White Oak Corporation and the Department of Transportation entered into a contract for the reconstruction of a bridge and a portion of Interstate 95 in the City of Bridgeport. The project experienced significant delays such that the Department and White Oak reassigned the contract to another contractor for completion. White Oak subsequently filed a notice of claim and demand for arbitration seeking compensation for money wrongfully withheld by the Department, as liquidated damages, for delays in the project. An arbitration panel concluded that the liquidated damages clause in the parties’ contract was unenforceable, and therefore, White Oak was entitled to a return of nearly $5 million withheld by the Department. The trial court granted White Oak’s application to confirm the arbitration award. The Appellate Court reversed, concluding that the arbitration panel exceeded its authority in rendering an award on White Oak’s claim. The Supreme Court reversed, holding that the Appellate Court incorrectly determined that, in a prior action brought by the Department to enjoin the arbitration, the trial court limited the scope of the arbitrable issues in the present case to a claim of wrongful termination such that the arbitration panel lacked jurisdiction to decide White Oak’s liquidated damages claim. View "Dep’t of Transp. v. White Oak Corp." on Justia Law