FEDERALCourt of Appeals for the Fifth Circuit
1990

Daniel International Corporation, Cross-Appellant v. Fischbach & Moore, Inc., Cross-Appellees

916 F.2d 1061Court of Appeals for the Fifth Circuit • Decided 1990Remanded

HOLDING

Daniel International sued electrical subcontractor Fischbach & Moore over delays on a Texas prison construction project with strict deadlines. The district court wrongly removed the case from the jury calendar three months before trial, and the appeals court reversed and ordered a new jury trial. The court also ruled that a contractually agreed 10% profit margin deduction for delays is a valid liquidated damages clause, not an unenforceable penalty.

KEY FINDINGS

Liquidated Damages

You have a right to a jury trial in contract disputes—courts cannot arbitrarily strip that right by removing cases from the jury calendar without good cause.

Change Order

Liquidated damages clauses tied to a specific profit margin percentage are enforceable if both parties agreed to them upfront, even if they result in significant financial consequences.

FULL COURT OPINION