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Question
Old Orchard Beach Hotel hired Miller Electrical Company to do the electrical work on a new addition that they built on the back of their current hotel. The work was scheduled for completion on December 20 so that the hotel could rent the space out over the holidays. The total cost of the job was $75,000. The lawyers for the hotel drew up the contract and included a liquidated damages clause that stated that in the event that Miller did not complete the work, Miller would have to pay the hotel $50,000. On December 20 when the job was to be finished, Miller Electrical ran into an issue that delayed them from connecting the new space to the hotel's current electrical system. Old Orchard Beach requested that Miller Electrical make payment of the $50,000. Miller refused to pay and filed a lawsuit. What is the outcome?
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