Opinion ID: 2573445
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: ¶ 1 Utah Department of Transportation (UDOT) contracted with Fluor Ames Kraemer, LLC, (FAK) to construct the Legacy Parkway (the project). FAK then subcontracted with Encon Utah, LLC, (Encon) to manufacture and install bridge girders for the project. UDOT partially terminated the project, and, as a result, FAK terminated Encon's subcontract. Encon filed suit against FAK and FAK's sureties, Fireman's Fund Insurance Company and St. Paul Fire and Marine Insurance Company, (collectively, FAK parties) to recover the amounts it claimed it was owed under the termination provision of the subcontract. The FAK parties and Encon filed motions for partial summary judgment regarding the interpretation of that termination provision. ¶ 2 The trial court granted Encon's motion for partial summary judgment and denied the FAK parties' motion. After a four-day bench trial, the court entered judgment in favor of Encon and jointly against the FAK parties, awarding Encon termination damages, prejudgment interest, and attorney fees and costs. In total, the court awarded Encon $1,699,563.50. The FAK parties timely appealed, claiming that the court erred in (1) applying the termination provision of the subcontract and interpreting that provision such that Encon received an excessive award of compensation for early termination; (2) awarding Encon $50,000 in claim preparation costs; (3) awarding Encon prejudgment interest on its termination damages; and (4) interpreting Utah Code section 63-56-38(4) such that Encon's bond claim was timely filed, and, as a corollary matter, awarding attorney fees based on Encon's bond claim.