Sea Byte, Inc. v. Hudson Marine Management Services, Inc.
565 F.3d 1293 | Court of Appeals for the Eleventh Circuit | 2009
What This Case Means for Subcontractors
Hudson Marine contracted with Thomas Miller to restore an underwater reef for a fixed price. Hurricanes struck during the work, expanding the project scope beyond what the contract covered. The court ruled the contract terminated automatically due to the severe weather provision, so neither party breached. Hudson recovered damages for work completed before the hurricanes (based on percentage of contract value) plus quantum meruit (fair market value) for work done after the contract ended.
Key Takeaways
- •Force majeure clauses can terminate a contract automatically—review your contract's severe weather language to understand when work obligations end and what happens to payment
- •When a contract terminates due to force majeure, you may still recover for work already performed, but you'll likely get quantum meruit (reasonable value) rather than full contract rates for post-termination work
- •If hurricanes or other disasters expand project scope, document everything immediately—you'll need clear evidence of what was completed before termination and what work was done afterward to support damage claims
Contract terminated by its own terms when hurricanes struck and parties could not renegotiate.
Frequently Asked Question
If a hurricane forces us to stop work mid-project, do we still get paid?
Yes, but it depends on your contract's force majeure clause. If the clause terminates the contract automatically when severe weather hits, you'll be paid for work completed before the hurricane at your contract rate. For any work done after the contract ends, you'll recover quantum meruit—the reasonable market value of that labor—which may be less than your contract price. Document all work carefully to prove what was done before and after termination.
Related Cases
Texas Natural Resource Conservation Commission v. IT-Davy
Sovereign immunity bars a contractor's breach-of-contract suit against a state agency absent express legislative consent; neither the agency's conduct, contract terms, nor general statutes waive immunity from suit.
Martin K. Eby Construction Company, Inc. v. Dallas Area Rapid Transit
A contractor must exhaust administrative remedies established by a regional transportation authority before pursuing breach of contract claims in court, even when the authority lacks governmental immunity from suit.
Edwin P. Harrison, and United States of America, Party in Interest v. Westinghouse Savannah River Company
The Fourth Circuit reversed the district court's dismissal, holding that the False Claims Act broadly reaches false statements made to obtain government contract approval, not just false payment claims themselves.
United States v. Winstar Corp.
The Government's contractual promises regarding supervisory goodwill accounting treatment are enforceable despite subsequent regulatory changes, and the Government is liable for breach when Congress eliminated those accounting benefits.
Green International, Inc. v. Solis
No-damages-for-delay clauses in construction contracts need not meet the conspicuousness requirement established in Dresser for exculpatory negligence clauses, and such clauses are enforceable to bar delay damages absent specific exceptions.
Flameout Design & Fabrication, Inc. v. Pennzoil Caspian Corp.
Summary judgment for defendants was properly granted because Flameout failed to satisfy the statute of frauds for an alleged three-year contract, as the three documents cited did not constitute a signed, enforceable written agreement for the sale of goods.