BUSN 420
Chapter-End Critical Thinking Cases
Professor Mitchell Levin
DeVry University
August 8, 2015

16.1 Specific Performance
Can C&H recover the liquidated damages from Sun Ship? Yes C&H can recover liquidated damages from Sun Ship. C&H had contracted with Sun Ship to deliver a barge on June 30, 1981 they also went under contract with Halter to deliver the tug on April 30, 1981 to the ship yard of Sun Ship. Both entities breached their contract as they failed to deliver by the dates in the contract. Halter completed the tug July 15, 1982 and Sun Ship completed the barge March 16, 1982 and delivery to C&H was in July 1982 they were both more than a year late on the contracted agreement.
By having the force majeure Sun would have been entitled to an extension however they were still late and it seems as if there was a lack of good communication between the two contractors. C&H received the $17,000 per day that was agreed upon as liquidated damages this totaled $3,298,000 but it was also determined that they were entitled to $1,105,000 more less the setoffs determined by the district court (leagle.com).
C&H went into contract in good faith with Sun Ship and there was a reasonable amount of time to produce and deliver the barge. Sun Ship wanted to blame Halter for the delay but they were both equally responsible for the delays that occurred and should in fact have to pay the liquidated damages since the contract explicitly stated the delivery was to occur on June 30,1981 and the delivery was actual one year late. With this delay business was disrupted to the extent that additional resources were required to be used which means paying money to other entities to carry out the shipping of the sugar so there was no waste incurred.
C&H was successful in presenting their case and being found entitled to damages however not in the sum