The defendant Crown brought a motion for partial summary judgment seeking dismissal of claims advanced by a general contractor on behalf of subcontractors arising from delays in a federal construction project.
The Crown argued that the subcontractors lacked privity of contract with the owner, that the contractor had not itself suffered damages, and that the claims were barred by limitation periods and lack of contractual notice.
The court held that the contractual scheme contemplated subcontracting and permitted the contractor to pursue delay damages that included sums payable to subcontractors where liability rested with the owner.
The absence of direct contractual privity between subcontractors and the owner was not a bar where the contractor’s contract allowed recovery of such costs and the subcontract conditioned payment on recovery from the owner.
The court concluded that the subcontractor claims raised a reasonable cause of action and that genuine issues required a trial.