Shank/Balfour Beatty v. Met. Water Dist
Plaintiff and appellant Shank/Balfour Beatty (SBB) was awarded contracts by defendant and respondent Metropolitan Water District of Southern California (MWD) for the construction of two tunnels underneath the San Bernardino mountains for the purposes of a large water transmission line. Ameron International (Ameron) was SBBs subcontractor for the construction of the reinforced concrete cylindrical pipe to be placed within the tunnels to carry the water.
Court conclude: (1) the contracts were terminated; (2) SBB is barred from arguing the termination constituted a breach; and (3) the contract clause limiting the compensation for overhead during a period of suspension is enforceable. Court therefore affirm the judgment. As SBB failed to appeal the costs award, Court do not consider its propriety.
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